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Fiscal policy in extraordinary times: A perspective from Australia’s experience in the global recession

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  • Charlton, Andrew

Abstract

Australia is almost unique in the developed world for the fulsomeness of its Keynesian fiscal stimulus during the global recession of 2008–2009 and for the subsequent strength of its macroeconomic performance. This paper draws some lessons for discretionary fiscal policy from the Australian experience during that period. When the crisis hit, policymakers around world were faced with three practical fiscal questions: when to stimulate, what to stimulate and how to withdraw stimulus? This paper describes the Australian government’s answers to these questions and what we learned along the way.

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  • Charlton, Andrew, 2019. "Fiscal policy in extraordinary times: A perspective from Australia’s experience in the global recession," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 83-90.
    • Handle: RePEc:eee:ecanpo:v:64:y:2019:i:c:p:83-90
    DOI: 10.1016/j.eap.2019.07.009
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    References listed on IDEAS

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    5. Anthony J. Makin, 2010. "Did Australia's Fiscal Stimulus Counter Recession?: Evidence from the National Accounts," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 17(2), pages 5-16.
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    More about this item

    Keywords

    Financial crisis; Fiscal policy; Australia fiscal stimulus;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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