Our foreign investment rules should be eased, says OECD
The OECD estimates that if investment restrictions were removed, foreign direct investment into Australia would "increase noticeably over time".At least she's honest enough to point out the flaw in her clever plan.
Australia's foreign liabilities are virtually all held in Australian dollars or hedged back to Australian dollars. As foreign investors seem happy to hold assets in Australian dollars, domestic borrowers are protected against exchange rate risks. During the global financial crisis this helped shield the country against the increased volatility of the exchange rate.