Research essay (shudder)...can someone point me in the right direction please? (1 Viewer)

[delfick]

hi there

I recently got a research essay for my economics class....
It is broken into two parts

1) Describe the size and compostion of Australia's foreign debt
2) Explain the future economic implications of Australia's foreign debt

The first part i should be able to do (hopefully)
But the second one seems a bit more daunting.

So it would be so good if someone could point in the right direction of where to get some information,

thnx

 

[Loz_metalhead]

FD adds to the CAD due to the interest repayments which have to be paid-servicing costs.

The CAD has many implications on an economy such as:
-restraint on economic growth
-Will influence govt policies(Monetary policy-increase interest rates to decrease consumer spending and M, tighter fiscal policy)
-It makes the exchange rate more volatile
-Affects investor confidence

Thats just off the top of my head... High foreign debt will decrease our credit rating-harder to borrow money and also interest repayments increase due to higher risk. Also the debt trap scenario.

Hope that helps a little.

 

[delfick]

Thankyou very much

that should be helpful.....