Australian Macro-Economy Essay Example | Topics and Well Written Essays - 1750 words

Australian Macro-Economy - Essay ExampleThe macro-economic environment supporting the Australian micro-economic reforms have been satisfactory is roughly respects, but notably deficient in other areas. It is imperative to examine these developments briefly, since, if the major problem areas are not resolved, they have the potential to disrupt the genuinely significant achievements and frustrate the path towards an internationally orientated and efficient economy. The purpose of this section is to examine briefly the salient features of the macro-environment. This article also alludes to some of the effectuate of the reforms. It does not attempt to provide a comprehensive assessment, which would be beyond the scope of this chapter, and arguably premature. monetary PolicyThroughout most of the reform period, fiscal policy was reasonably conservative. The Australian Labor presidency inherited a large fiscal deficit in 1982/3, in consequence partly of a severe recession. The govern ment proceeded to reduce this deficit progressively through the decade. By 1987/8 a blue surplus had been achieved, and was maintained for the next three years, before another serious recession forced a change in policy. For a short period, also, the administration reversed the post-war trend towards an ever-larger government presence in the economy. Economic growth remained quite buoyant during this period, although inflation continued to exceed that of major trading partners, eyepatch remaining below 10 per cent after 1983. The recession of the early 1990s was the major break in macro-economic management over this period.