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dc.contributor.authorMakin, Tony
dc.contributor.editorAlfred E. Eckes, Khosrow Fatemi
dc.date.accessioned2017-05-03T12:19:22Z
dc.date.available2017-05-03T12:19:22Z
dc.date.issued2005
dc.date.modified2007-03-29T08:00:30Z
dc.identifier.issn1553-5304
dc.identifier.urihttp://hdl.handle.net/10072/4622
dc.description.abstractLarge current account deficits and foreign debt levels remain a source of concern for international financial markets and policymakers. Yet, exactly what an "excessive" external deficit or liability position for an advanced economy is at any time has never been adequately defined. This paper addresses the question by proposing new methods for assessing the proximity of current account deficits and the associated foreign debt to their upper bounds. It contends that productive investment fundamentally sets the feasible limit for current account deficits, whereas the capital to output ratio ultimately sets the foreign debt to GDP limit. Benchmark estimates for the United States, Australia, New Zealand and the United Kingdom, advanced economies that have borrowed heavily since 1990, reveal external deficits have usually been well within limits, although recent United States experience is an exception.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent180804 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglish
dc.language.isoeng
dc.publisherWalter de Gruyter GmbH
dc.publisher.placeUnited States
dc.publisher.urihttp://www.bepress.com/gej/vol5/iss1/1/
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto14
dc.relation.ispartofissue1
dc.relation.ispartofjournalGlobal Economy Journal
dc.relation.ispartofvolume5
dc.rights.retentionY
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchcode1402
dc.titleFeasible Limits for External Deficits and Debt
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.rights.copyright© 2005 Berkeley Electronic Press. Reproduced in accordance with the copyright policy of the publisher. This journal is available online - use hypertext links.
gro.date.issued2005
gro.hasfulltextFull Text
gro.griffith.authorMakin, Tony J.


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