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How Far Should Mr Keating Go?

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  • Ian M. McDonald

Abstract

Australia's current account deficit is large by historical standards and so is the boom in private investment spending. The net effect is a level of thrift that is not unusually low. A major uncertainty facing policymakers is how far unemployment can be reduced without causing an inflationary spiral. If unemployment can be reduced without igniting inflation, then there is a case for loosening monetary policy. Copyright 1989 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

Suggested Citation

  • Ian M. McDonald, 1989. "How Far Should Mr Keating Go?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 22(2), pages 25-28.
  • Handle: RePEc:bla:ausecr:v:22:y:1989:i:2:p:25-28
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8462.1989.tb00321.x
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    Cited by:

    1. J. 0. N. Perkins, 1991. "Possible Policies for Expansion," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 4-15.

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