Belkar, Rochelle; Cockerell, Lynne; Kent, Christopher - Reserve Bank of Australia - 2007
, concerning the relevance of the current account deficit for policy. Historical experience under a fixed exchange rate regime … that all arms of policy should help to rein in the then much larger current account deficits. However, these policies were … shown to be ineffective and, by the early 1990s, the argument that current account deficits represent the optimal outcomes …