ohsofluffy
New Member
How can a high CAD act as a speed limit on economic growth?
But what if a CAD is used to finance investment? Through that channel injections > leakages.No one really Has answered this correctly.
In short: high cad means more funds flow overseas as servicing costs, foreign (asain) liabilities etc. Therefore money leaves Australia causing
Leakages > injections.
And if you dont know wha the above means you shouldn't do economics. In short it means a contraction in the economy. Hence the speed limit
No one really Has answered this correctly.
In short: high cad means more funds flow overseas as servicing costs, foreign (asain) liabilities etc. Therefore money leaves Australia causing
Leakages > injections.
And if you dont know wha the above means you shouldn't do economics. In short it means a contraction in the economy. Hence the speed limit