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Macroeconomic Policy and the Balance of Payments in Australia

Author

Listed:
  • Kearney, D.T.C.
  • Fallick, L.

    (University of New South Wales, Kensington, NSW
    Administrative Clerical Officers Administration, Sydney)

Abstract

The current stance of macroeconomic policy in Australia is designed to secure improved performance in the economy’s balance of international payments. The paper examines key aspects of this policy stance. It argues that reliance on the J-curve effect of exchange rate depreciation together with tight fiscal policy will not deliver permanently improved trade performance unless accompanied by industrial initiatives aimed at improving the economy’s structural weaknesses.

Suggested Citation

  • Kearney, D.T.C. & Fallick, L., 1987. "Macroeconomic Policy and the Balance of Payments in Australia," Economic Analysis and Policy, Elsevier, vol. 17(2), pages 131-148.
    • Handle: RePEc:eee:ecanpo:v:17:y:1987:i:2:p:131-148
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