Australia has a lot of foreign businesses and it has a lot of immigrants. Both earn Australian dollars and huge amounts would be sent back their country of origin.
His does Australia balance its books on something like this? How do the economics of it work? Would it lower Australian inflation but shortening the money supply, and raise inflation of the destination country as it prints more money to exchange the Australian dollar?
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.