The paper "Macroeconomic Policy in Australia - Monetary and Fiscal Policy" is a perfect example of a micro and macroeconomic case study. Australian governments over precedent decades have conventionally aimed towards including triangular objectives of financial growth, domestic poise, and external poise within the framework of a single economy. (DORNBUSCH, Rudiger, 2006) Collectively, these trio set of objectives aimed towards sustaining nationalized financial growth while retaining inferior inflation as well as limiting the mass of overseas debts and liabilities. Several researches conducted in the concerned field have revealed that there is no consistency in the level of economic growth though; it is influenced greatly by fluctuations of the international business cycle.
(DORNBUSCH, Rudiger, 2006) Governmental macroeconomic management is referred to as an attempt to minimize the impact of international business fluctuations by controlling demand to facilitate sustained growth together with inferior inflation and unemployment. (BLINDER, Alan S., 2008) The macroeconomic policies, owing to influenced-by-demand nature, cannot be exercised exclusively and thus, are utilized in combination with supply-side swaying microeconomic reforms. (BERNANKE, Ben, 2007) Conventionally, the fiscal policies are frequently implemented by the Australian government to enhance domestic savings and to control government public debt in order to maintain adequate levels of external aspects and stability together with providing openings for economic growth.
(BERNANKE, Ben, 2007) This paper hereby emphasizes exhibiting current macroeconomic policy settings currently being applied in Australia in addition to suitable policies in the context of expectations regarding economic growth, unemployment, inflation and trade over the next year. Macroeconomic Policies In influencing demand with and economy, the government uses the two instruments of fiscal and monetary policy. Fiscal Policies “ Fiscal policy” is the utilization of governmental expenditures together with taxation to sway the financial system of the country.
(SUESCÚ N, Rodrigo, 2007) Usually, governments execute fiscal policies to endorse sturdy and sustainable economic growth and diminish poverty.
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