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Introduction The balance of payments current account is one of popular indicators of a country's economic health. "Current account deficit means an excess of imports over exports of goods, services, investment income, and unilateral transfer (Carbaugh, 2002, p.350)."Although Australia's current account deficit has exceeded about 3 percent of GDP for about 20 consecutive years (Sighvatsson, 2001), there has not been that a big current account deficit problem. Mexico had a current account deficit which became a big problem …

…time, there is no evidence showing that the current account deficit is a big problem like the economic crisis in Mexico or Thailand. There are many methods using to adjust the current account deficit, for example, the increasing in the national savings, decreasing the government expenditure, and other mechanisms such as fiscal policy and monetary policy. However, the method using in one country may not suit to others because the situation and environment is different.