Abstract
Macroeconomic policy in Australia in 1989 is apparently facing a dilemma. A rising current account deficit and inflation stubbornly above the rates in other OECD economies, have coincided with an unprecedented fiscal contraction and tight monetary policy . It is frequently claimed that macroeconomic policy, in particular the mix of monetary and fiscal policy, has done as much as possible to address the current problems in Australia .
The purpose of this paper is to place the current macroeconomic situation in Australia in the perspective of the experience during the 1960s and 1970s and within the context of major swings in the world economy . Viewing the current situation from a longer run perspective allows us to disentangle broad trends in the economy from short - run fluctuations . Distinguishing between trends and fluctuations can have important implications for the appropriateness of macroeconomic and microeconomic policy responses . In particular, we focus on the performance of the policy mix of fiscal and monetary policy since 1984.
The purpose of this paper is to place the current macroeconomic situation in Australia in the perspective of the experience during the 1960s and 1970s and within the context of major swings in the world economy . Viewing the current situation from a longer run perspective allows us to disentangle broad trends in the economy from short - run fluctuations . Distinguishing between trends and fluctuations can have important implications for the appropriateness of macroeconomic and microeconomic policy responses . In particular, we focus on the performance of the policy mix of fiscal and monetary policy since 1984.
| Original language | English |
|---|---|
| Title of host publication | Australian Economic Policy |
| Subtitle of host publication | Revised Papers From The Conference held on 27-28 November 1989 |
| Editors | F. H. Gruen |
| Place of Publication | Canberra |
| Publisher | Centre for Economic Policy Research |
| Pages | 58-118 |
| Number of pages | 61 |
| ISBN (Print) | 0731502396, 9780731502394 |
| Publication status | Published - 1991 |
| Externally published | Yes |
| Event | Australian Economic Policy: Conference of the Centre for Economic Policy Research - Centre for Economic Policy Research, Canberra, Australia Duration: 27 Nov 1989 → 28 Nov 1989 https://babel.hathitrust.org/cgi/pt?id=uc1.31822007732969&seq=1 |
Conference
| Conference | Australian Economic Policy |
|---|---|
| Country/Territory | Australia |
| City | Canberra |
| Period | 27/11/89 → 28/11/89 |
| Internet address |