1. Balance of Payments and the Australian Dollar
For example, an increase in demand for Aus exports from china has been recently occurring with a 55% jump in demand for iron ore, will increase demand for the AUD and cause an appreciation. ... Changes to the financial account significantly impact the value of the AUD as it reflects in confidence in the Australian economy. ... In the long term, changes to the net primary income account tend to be similar as it is the structural component of the CAD, reflecting a mix of structural problems in the Australian economy. ... The BOP changes due to a number of cyclical and structural factors, reflect...
- Word Count: 1109
- Approx Pages: 4
- Grade Level: Undergraduate