Australia: Current Account Targets
(In percent of GDP)
Source: Authors’ calculations.Note: The entries in the table are the minimum current account balances required to meet certain objectives. The objective under Scenario 1 is to stabilize the NFL-to-GDP ratio at 55 percent, under the assumption of a constant real exchange rate. The objective under Scenario 2 is to reduce the NFL-to-GDP ratio to 25 percent by the year 2010, under the assumption of a constant real exchange rate. The objective under Scenario 3 is to stabilize the NFL-to-GDP ratio at 55 percent, under the assumption of a real exchange rate appreciation at the rate of 1.25 percent per year. The world real interest rate is denoted by r, -rb denotes net foreign investment payments (net interest servicing) as a share of GDP, and γ is the rate of GDP growth.
|Scenario 1||Scenario 2||Scenario 3|