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this post was submitted on 10 Jul 2023
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No Stupid Questions
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No such thing. Ask away!
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There's a LOT that goes into global monetary policy. I know more than some, but it's complicated in a way that's not easy or quick to explain here.
So to try and keep it short, there's at least a couple major trade-offs. First, it would be somewhat offset by Australian immigrants working in other foreign countries and sending money home to Australia. Second, Australia has global trade partners for a multitude of things and can offset imbalances through borrowing or lending through international trade if and when needed.
There's really so much more that goes into it and it's a bit different for every country, but that's a broad idea of how it can balance out.
Ahh, okay. Yeah I imagine it’s a spider’s web of in-and- money-flow, macroeconomics at play.
So you’re saying it does balance with everything considered? And to remain a wealthy country our bottomline must be in the black when all added up?
theres mechanisms to help balance it out, like forex markets, currency pegging to standards, and actual transfers of gold.