(Whether it should, of course, would depend upon the circumstances.) Whatever the strength of this argument - and it is strongest for fixed exchange rate cases - it clearly does not apply to Australia, as we have a buoyant domestic economy. Furthermore, Australia is recognised internationally as having had one of the best growth records among OECD countries this decade.
(Only Ireland and Norway - two very small economies - have done better.) I will delay discussion of the current account, the balance of payments and foreign debt until after I have completed the list of positive factors for the Australian economy. The next factor on my list was whether the country was in the midst of an asset price boom.