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How Far Should Mr Keating Go?
Author(s) -
McDonald Ian M.
Publication year - 1989
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1989.tb00321.x
Subject(s) - unemployment , economics , inflation (cosmology) , boom , investment (military) , keynesian economics , monetary economics , monetary policy , current account , spiral (railway) , macroeconomics , physics , political science , engineering , mechanical engineering , environmental engineering , politics , theoretical physics , law , exchange rate
Australia's current account deficit is large by historical standards and so is the boom in private investment spending. The net effect is a level of thrift that is not unusually low. A major uncertainty facing policymakers is how far unemployment can be reduced without causing an inflationary spiral. If unemployment can be reduced without igniting inflation, then there is a case for loosening monetary policy.