Monetary v fiscal policy: the die is cast
Monday, October 19th, 2009Rainbow Reporter wrote an intriguing post today on
Here’s a little taster
It is clear that a gap has opened between the RBA’s view of Australia’s economic prospects and that of the Federal Government and its Treasury Department. The Reserve Bank Board is winding back its “emergency” monetary policy, but the Treasury sees no need for winding back the emergency fiscal policy of stimulus spending and large budget deficits. Glenn Stevens (15 October) and Ken Henry (23 September) have expressed these views in recent speeches on how the GFC is playing out in Australia.
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