How Far Should Mr Keating Go?

Ian McDonald ()

Australian Economic Review, 1989, vol. 22, issue 2, 25-28

Abstract: 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.

Date: 1989
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