The UK’s longstanding current account deficit indicates that the UK economy has a fundamental problem of international competitiveness.

Of New Zealand’s $171.2 billion total investment abroad, 58.1 percent was in Australia, the United States, and the United Kingdom.

The report focusses on movements in the estimated structural budget balance over the past decade and through the 2013-14 budget and forward estimates years.

This paper presents some empirical evidence consistent with optimal smoothing in the face of temporary shocks; the persistence of the deficit is attributed to a modest degree of impatience relative to the rest of the world. It is argued that the factors that have made Australia relatively resilient to external shocks are also those that...