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Some issues affecting the macroeconomic environment for the agricultural and resource sectors: the case of fiscal policy

Author

Listed:
  • O'Mara, L. Paul
  • Bartley, Scott W.
  • Ferry, R.N.
  • Wright, Robert S.
  • Calder, M.F.
  • Douglas, Justin J.

Abstract

The impact of structural changes in fiscal policy on macroeconomic stability in Australia and other developed economies since the mid‐1970s is assessed. The evidence points to a destabilising influence from fiscal policy from the mid‐1970s to the mid‐1980s, with a more stabilising influence since then. Within Australia, there is some evidence that structural changes to fiscal policy may have helped to stabilise interest rates and the real exchange rate over the period since the mid‐1980s. However, this stabilising influence on the real exchange rate may have reduced the extent to which real exchange rate movements have countervailed world commodity price changes in Australian dollar terms.

Suggested Citation

  • O'Mara, L. Paul & Bartley, Scott W. & Ferry, R.N. & Wright, Robert S. & Calder, M.F. & Douglas, Justin J., 1999. "Some issues affecting the macroeconomic environment for the agricultural and resource sectors: the case of fiscal policy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(2), pages 1-29, June.
    • Handle: RePEc:ags:aareaj:117039
    DOI: 10.22004/ag.econ.117039
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    References listed on IDEAS

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    1. Martin, W & Shaw, I, 1986. "The Effect of Exchange Rate Changes on the Value of Australia's Major Agricultural Exports," The Economic Record, The Economic Society of Australia, vol. 0(0), pages 101-107, Supplemen.
    2. Mankiw, N Gregory, 1990. "A Quick Refresher Course in Macroeconomics," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1645-1660, December.
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    Cited by:

    1. David Gruen, 2005. "Discussion of 'Assessing the Sources of Changes in the Volatility of Real Growth' and 'Declining Output Volatility: What Role for Structural Change?'," RBA Annual Conference Volume (Discontinued), in: Christopher Kent & David Norman (ed.),The Changing Nature of the Business Cycle, Reserve Bank of Australia.

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    Keywords

    Agricultural Finance;

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