structure for external stability essay (1 Viewer)

[indeed]

Hi all,

^ would you do it based on the BOP (CA, NPY) or based on the measures of external stability:


Thanks!

 

[jeetee3499]

hi

i think the way i would structure it is similar to based on the measurements of external stability

my teacher always emphasised that the three components are the current account, net foreign liabilities and exchange rate

so yeah i'd probably just do
p1 - current account
p2 - net foreign liabilities
p3 - exchange rate

possibly in a different order depending on the flow

could split current account if you wanted to into two paragraphs (one on BOGs and one on NPY)

for trials I chose to do an external stability+monetary policy essay, it wasn't too good (15/20), but I think that was my general structure... w/ external stability everything is interconnected w/ each other so it's a bit icky to split (for me when I'm doing it)

idk if this actually helps, if it didn't sorry

 

[indeed]

hi

i think the way i would structure it is similar to based on the measurements of external stability

my teacher always emphasised that the three components are the current account, net foreign liabilities and exchange rate

so yeah i'd probably just do
p1 - current account
p2 - net foreign liabilities
p3 - exchange rate

possibly in a different order depending on the flow

could split current account if you wanted to into two paragraphs (one on BOGs and one on NPY)

for trials I chose to do an external stability+monetary policy essay, it wasn't too good (15/20), but I think that was my general structure... w/ external stability everything is interconnected w/ each other so it's a bit icky to split (for me when I'm doing it)

idk if this actually helps, if it didn't sorry

It helped a lot, cheers

 

[mmmmmmmmaaaaaaa]

what I did last year (and got 20/20 with ease) was
my main points were:
1. current account
2. TOT
3. net foreign debt/liabilities

 

[indeed]

what I did last year (and got 20/20 with ease) was
my main points were:
1. current account
2. TOT
3. net foreign debt/liabilities

Oh ok

 

[trenboloneacetate]

what I did last year (and got 20/20 with ease) was
my main points were:
1. current account
2. TOT
3. net foreign debt/liabilities

shouldn't you also do in the same para since they're pretty small, ToT and the volatility of the exchange rate

 

[mmmmmmmmaaaaaaa]

shouldn't you also do in the same para since they're pretty small, ToT and the volatility of the exchange rate

yes, I also considered that

note that I said main points

 

[trenboloneacetate]

yes, I also considered that

note that I said main points

yeah I read that, im not criticising, 20/20 is insane, just more for others if they want to address every single part of the syllabus

 

[user18181818]

hi

i think the way i would structure it is similar to based on the measurements of external stability

my teacher always emphasised that the three components are the current account, net foreign liabilities and exchange rate

so yeah i'd probably just do
p1 - current account
p2 - net foreign liabilities
p3 - exchange rate

possibly in a different order depending on the flow

could split current account if you wanted to into two paragraphs (one on BOGs and one on NPY)

for trials I chose to do an external stability+monetary policy essay, it wasn't too good (15/20), but I think that was my general structure... w/ external stability everything is interconnected w/ each other so it's a bit icky to split (for me when I'm doing it)

idk if this actually helps, if it didn't sorry

how did u link external stability to MP? like how is net foreign liabilities related to MP

 

[mmmmmmmmaaaaaaa]

how did u link external stability to MP? like how is net foreign liabilities related to MP

it's not really applicable as it is a blunt tool

 

[itsalovehaterelo]

how did u link external stability to MP? like how is net foreign liabilities related to MP

ext stability to MP isnt that bad because the interest rate influences NFE, (higher IR = higher FDI due to higher returns) which also influences value of the AUD.

 

[Mikdin11]

how did u link external stability to MP? like how is net foreign liabilities related to MP

Can talk about higher I/R compared to other OECD economies leads to inflow of capital into Australia (higher relative rate of return on investment), increasing debits on the NPY account in the form of dividends and interest repatriations to lenders -> worsened current account position -> worsened external stability

 

[jeetee3499]

how did u link external stability to MP? like how is net foreign liabilities related to MP

i was looking over my essay and I did
Tightening of MP -> interest rise -> increased demand -> appreciation -> servicing cost of foreign liabilities lower in AUS terms (valuation effect)

if that doesn't sound right uhhhhhhh i was writing this essay in like the last 5 minutes bc i screwed up w/ time distribution haha. def could've gone more in depth but yeah that's an avenue u can take