CAD
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Good afternoon Teacher and fellow students, to a visitor from the northern hemisphere, Australia is like another planet. Not only does the sunshine here much brighter, but also even as the economies of America, Europe and Japan appear to be stumbling for the second time in less than three years, Australia continues to boom. We are now in our 12th year of uninterrupted economic expansion. Since James Cook first landed on Australian turf in 1770, with the exception of once Australia has run a current account deficit every year. Why you may ask? Because, due to the cooperation of other countries, running a CAD has allowed and contributed for much of Australia's economic growth. This speech will cover many areas regarding Current account deficits and foreign debt including a general overview of terms, The Australian Experience, Dealing with imbalances and the Significance of the current account deficit and foreign debt. For many years, the Economic public of Australia has been subject to discussion regarding whether current account deficit and foreign debt are things to be avoided. I believe that running a current account deficit can prove to be beneficial if the debt is used to fund an income generating investment project.
A current account deficit basically refers to a situation where as a nation we are spending more than the income we generate and as a result of this foreigners either buy Australian assets or give us a loan to the same amount as the current account deficit...