Australia: Selected Issues

International Monetary Fund

No 2005/330, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper reviews how Australia’s economy has adapted to a flexible Australian Dollar. The paper provides a background on the float and the initial policy challenges. It discusses the main elements of the Future Fund proposal, and estimates how much Australia and other countries in the Asia-Pacific region would gain from greater financial integration. The results suggest that these welfare gains are large, giving an argument in favor of a progressive capital account liberalization across the region, once the needed supporting measures are in place.

Keywords: ISCR; CR; Australia; investor; gain; stock index; diversification; FF proposal; FF investment; diversification increase; FF portfolio; Asia index; gains from diversification; asset price; certainty-equivalent wealth; Financial integration; Exchange rates; Pension spending; Stocks; Pensions; Asia and Pacific; Global (search for similar items in EconPapers)
Pages: 42
Date: 2005-09-12
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