Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Australia's current account deficit; Domestic demand; Superannuation guarantee scheme; Australian dollar; Reserve Bank of Australia; Inflation targeting and monetary policy; Net foreign liabilities; Goods and services tax; Australian accounting standards; Australian Bureau of Statistics; First home owners scheme; Household savings ratio; National savings; Fiscal expenditures; Australian economy
Share a link:
https://casecent.re/p/19552
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
The Australian economy had a consistent growth, which was supported by an increase in domestic demand. For many years, the GDP (gross domestic product) growth rate was high, but the country had current account deficit. The Australian government took measures such as floating the Australian dollar, tightening its monetary policy and cutting the tariffs to encourage trade and reduce the gap in the trade balance. The government also implemented structural reforms like introducing a new tax system and the superannuation guarantee scheme. Although these reforms helped to increase the public revenue and encourage savings among the people, the Australian government was unable to manage the current account deficit. The current account deficit followed a cyclical trend, as it reduced in 2001 and widened again in 2003. The case helps the reader to discuss the reasons that led to the growing deficits in the current account of Australia and how the Australian government tried to manage it.
Location:
Other setting(s):
2004
About
Abstract
The Australian economy had a consistent growth, which was supported by an increase in domestic demand. For many years, the GDP (gross domestic product) growth rate was high, but the country had current account deficit. The Australian government took measures such as floating the Australian dollar, tightening its monetary policy and cutting the tariffs to encourage trade and reduce the gap in the trade balance. The government also implemented structural reforms like introducing a new tax system and the superannuation guarantee scheme. Although these reforms helped to increase the public revenue and encourage savings among the people, the Australian government was unable to manage the current account deficit. The current account deficit followed a cyclical trend, as it reduced in 2001 and widened again in 2003. The case helps the reader to discuss the reasons that led to the growing deficits in the current account of Australia and how the Australian government tried to manage it.
Settings
Location:
Other setting(s):
2004