Australia: 2010 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion

International Monetary Fund

No 2010/331, IMF Staff Country Reports from International Monetary Fund

Abstract: The impact of the global crisis was milder in Australia than in other advanced economies owing to strong demand from Asia and decisive policy responses. Australian banks were resilient to the global crisis, and the labor market was flexible in the face of the shock. The exit from fiscal stimulus is appropriate as is the recent review of the tax system. Banks could adopt riskier strategies and require vigilance. The exchange rate is overvalued but will dissipate as interest rates in other advanced economies eventually normalize.

Keywords: ISCR; CR; rate; commodity export; executive board assessment; monetary policy; exchange rate; cost of capital; timely unwinding; Australia's terms of trade; policy stimulus; Current account deficits; Terms of trade; Commodity prices; Global; Asia and Pacific (search for similar items in EconPapers)
Pages: 47
Date: 2010-10-28
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Citations: View citations in EconPapers (5)

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