Like its neighbor New Zealand, Australia has had a long string of current account deficits and is an international debtor. Go to the Australian Bureau of Statistics website at...

Like its neighbor New Zealand, Australia has had a long string of current account deficits and is an international debtor. Go to the Australian Bureau of Statistics website at http://www.abs.gov.au/AUSSTATS and find the data you need to carry out an “external sustainability” analysis of the current account such as the one for New Zealand in the chapter. You will need data starting in 1992 for nominal GDP, the IIP, the current account, and the balance on goods and services NX (from “time series spreadsheets”). The goal of the exercise is to find the interest rate r on the IIP that stabilizes the ratio IIP/GDP at its most recent value given the historical average of NX and the historical average of nominal GDP growth (all since 1992). Warning: This is a challenging exercise that requires you to navigate the Australian data system and judge the most appropriate data to use in light of what you learned in Chapter 13.