Can an increase in national saving reduce the level of unemployment in Australia?

Abdul Latif

Applied Economics Letters, 1996, vol. 3, issue 5, 329-332

Abstract: The savings to GDP ratio is considerably lower in Australia than the OECD average. The lower level of savings does not only result in a current account deficit but also has a negative relationship with the unemployment rate. In order to overcome this problem, the Australian government has recently adopted policies which are designed to increase the level of savings in the economy. An examination of the impact of these policies on unemployment shows that an increase in the level of savings would not be sufficient to reduce unemployment rates in Australia.

Date: 1996
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DOI: 10.1080/135048596356456

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