The resources boom has prompted much discussion of Australia having become a two-speed economy. There are concerns that the gains from the boom accrue largely to mining-related sectors and the states where these are concentrated, while the rest of the country is being hit by higher interest and...

This article examines the evolution of net foreign liabilities as a share of GDP in Australia and the United States. The two countries have been running similarly large current account deficits in recent years. But while net foreign liabilities have been growing steadily as a share of GDP in...

Asian governments have been accumulating foreign reserves (largely United States securities) on a large scale, as a result of maintaining fixed exchange rates or attempting to limit currency appreciation in the face of a weakening US dollar. The effects on Asia to date appear relatively benign....

The idea of Australia establishing a sovereign wealth as a response to the challenges posed by the resource boom has attracted considerable interest. Some argue that a fund investing in foreign assets, as is done in Chile and Norway, could ease pressures on trade-exposed industries resulting...

The Australian dollar has appreciated strongly over the past decade, leading to increased concerns over the impacts of the high exchange rate on trade-exposed sectors of the economy. This paper examines the underlying drivers of this rise, the exchange rate’s role as a macroeconomic shock...

A little-remarked aspect of the widening of United States trade and current account deficits since the late 1990s has been their limited effect on United States net foreign liabilities and, especially, net income. This has been possible because the United States has enjoyed both higher yields...