A central plank of the Government's economic strategy is to put in place policies to lift national saving to a level adequate to finance national investment without having to rely excessively on foreign saving. As explained in detail in last year's Budget papers, excessive reliance on foreign saving is likely to result in higher borrowing costs and exposes Australia to sudden and disruptive shifts in market confidence.
Federal Budget 1992
If we can't cope with the "sudden and disruptive shifts in market confidence", in a country where investors have no reason at all not to be confident, then how are developing countries supposed to make out.
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