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The Effectiveness of Incomes Policies, in Australia Bargaining and Inflation Targetting Enterprise

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  • Jenny N. Lye
  • Ian M. McDonald

Abstract

This paper updates earlier estimates that show the existence of a range of equilibrium rates of unemployment in Australia. Within the range of equilibria framework, the paper goes on to test the effectiveness of incomes policies, enterprise bargaining and inflation‐target based monetary policy for influencing the rate of inflation in Australia in the period 1965 to 2001. Incomes policies, especially the Accord, and enterprise bargaining are shown to have caused permanent reductions in the rate of inflation. The inflation‐target based monetary policy is shown to be associated with, but is not shown to have caused, a reduced impact on inflation of changes in the level of activity.

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  • Jenny N. Lye & Ian M. McDonald, 2004. "The Effectiveness of Incomes Policies, in Australia Bargaining and Inflation Targetting Enterprise," Australian Economic Papers, Wiley Blackwell, vol. 43(1), pages 21-38, March.
    • Handle: RePEc:bla:ausecp:v:43:y:2004:i:1:p:21-38
    DOI: 10.1111/j.1467-8454.2004.00214.x
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    References listed on IDEAS

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    1. Guy Debelle & Glenn Stevens, 1995. "Monetary Policy Goals for Inflation in Australia," RBA Research Discussion Papers rdp9503, Reserve Bank of Australia.
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    Cited by:

    1. Ian McDonald & Jenny Lye, 2006. "Union Power and Australia’s inflation Barrier, 1965:4 to 2004:3," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(3), pages 287-304, September.
    2. Mark Wooden, 2006. "Implications of Work Choices Legislation," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 13(2), pages 99-116.
    3. Ian M. McDonald, 2017. "‘We Will End Up Being a Third Rate Economy … A Banana Republic’: How Behavioural Economics Can Improve Macroeconomic Outcomes," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(2), pages 137-151, June.

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