摘要：The level of and movements in interest rates and the exchange rate can have asubstantial impact on the economic performance of Australia's primary industries.Whether a country and/or exchange risk premium has resulted in higher interestrates and increased volatility in the exchange rate is therefore important to theseindustries. There is some evidence that a small country risk premium may haveemerged during the early 1990s. In line with earlier studies, however, no evidencewas found of such a premium during the 1980s. A further .nding is that anyexchange risk premium may have declined over the last decade or so. Possiblelinks between risk premia and Australia's foreign debt and current account de.citsare also examined.
