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Fiscal policy

NARROWER TERMS
Working paper

Macroeconomic policy adjustments due to COVID-19: scenarios to 2025 with a focus on Asia

This paper updates the analysis of the global macroeconomic consequences of the COVID-19 pandemic in an earlier paper, with data as of late October 2020. It also extends the focus to Asian economies, and explores four alternative policy interventions coordinated across all economies.
Policy report

The MMT hoax

Economic history teaches us that sharply deteriorating macroeconomic conditions create a vacuum for alternative policy-oriented frameworks to emerge. This paper evaluates the macroeconomic worth of Modern Monetary Theory (MMT) and concludes that adhering to the policy prescriptions of MMT would lead to disastrous macroeconomic consequences...
Report

Fiscal sustainability: long-term budget scenarios

This report examines the sustainability of Australia's fiscal position by calculating future paths for debt under various scenarios for GDP growth, interest rates and the budget balance.
Working paper

COVID-19 fiscal support and its effectiveness

This paper uses a threshold-augmented Global VAR model to quantify the macroeconomic effects of countries’ discretionary fiscal actions in response to the COVID-19 pandemic and its fallout.
Policy report

The shifting roles of monetary and fiscal policy in light of COVID-19

This white paper aims to understand how varying economies have changed their monetary and fiscal policies to respond to the pandemic-induced economic crisis.
Discussion paper

Budget blueprint: five priorities to underpin the recovery

Australia is at a critical juncture. The COVID-19 crisis has cut short three decades of uninterrupted economic growth. This paper argues that Australia will require wide-reaching reforms that were necessary before the crisis, and are now more critical than ever before.
Policy report

The looming iceberg: Australia’s post-pandemic debt risk

One of the major economic policy issues of the times is the growth of public debt in the wake of the coronavirus pandemic and what this growth means for the future. Some economists believe the burden will be manageable. Others express varying degrees of concern...
Report

Inquiry into the indicators of, and impact of, regional inequality in Australia: final report

Regional inequality has been increasing in many countries. It is well recognised that living standards across Australia are also not equal. People in regions away from the capital cities generally have lower incomes, poorer health outcomes, less access to services. This inquiry report looks at...
Working paper

Public debt, public wealth and economic dynamics

The unprecedented government response to the global pandemic has pushed public debt in many countries to historic highs, relative to output. This paper assesses the arguments for and against fiscal expansion and rapidly rising public debt as a means to invest in comprehensive wealth.
Report

The choices we make: the economic future of Tasmania

This report analyses the economic effects of COVID-19 on Tasmania, and suggests how Tasmania can rebuild its way out of the COVID-19 crisis. It also makes some key recommendations to help Tasmania avoid the mistakes made at the federal level.