need help wit essay (1 Viewer)

[miz_fly]

if someone could help me wit this question...i checked this years budget stuff in the newspaper and i cant find any info... and i cant find anythin on the Traesury website..

Explain the role of fiscal policy in attempting to solve australia's external balance problem.

We're supposed to use this years budget figures and if necessary last years

It's due first week back afer the holz...so help is desperatley needed!!!!!

 

[redhat]

Originally posted by miz_fly
if someone could help me wit this question...i checked this years budget stuff in the newspaper and i cant find any info... and i cant find anythin on the Traesury website..

Explain the role of fiscal policy in attempting to solve australia's external balance problem.

We're supposed to use this years budget figures and if necessary last years

It's due first week back afer the holz...so help is desperatley needed!!!!!

hmm sorry.. i would help if i could, but i can't. I've only done up to 3/4 of the prelim course atm.

 

[miz_fly]

thats aight...i shouldve wrote its for yr 12

 

[Nick]

you could go to smh or something and look for back articles on the budget, they would have the main issues..

basically the Government runs budget surplus to help external balance so they will have domestic savings from which firms can borrow money to finance investments, instead of having to borrow money from overseas, which they would have to do if the Government was runnign a defecit.

 

[jk]

crowding out theory

 

[marsenal]

With the figures, just state how the 2003-4 budget is expected to be in surplus of however much, meaning that the Gov may reduce Australia's net foreign debt/liabilities with that money. Keep in mind however that the bulk of external debt and liabilities is made up by the private sector, so even if the Gov had the money, there is not all that much they can do.
Also by running a surplus, it means the Gov is not adding any further pressure to Australia's CAD.
I guess you could even say that by having a surplus, it means that global financial institutions look favourably onto Australia, meaning our credit rating may be increased. Also, the dollar is more likely to remain stable. However these points are probably quite weak.
BTW is this an essay or what and how long is it supposed to be?

 

[miz_fly]

yea it is an essay...it can be as long as you want but you gotta cover all the major points...three page max (with small font) shoud do for my teacher

Thats wierd coz i was expecting the papers and stuff to have a whole bunch of info on this or at least say "australia's gonna solve external balance problem blah blah blah like this..." since we do have a large CAD problem

 

[Minai]

But remember, that the government has shifted its objective to achieving close to budget balances over the course of the business cycle, ie, not running surpluses but not running massive deficits - fiscal policy is currently no longer being used to control external stability, instead, monetary policy is used to achive the gov'ts fiscal balance aims...