IDEAS home Printed from https://ideas.repec.org/p/rsm/pubpol/p07_3.html
   My bibliography  Save this paper

Beyond Stop/Go?: Explaining Australia’s Long Boom

Author

Listed:
  • Stephen Bell

    (University of Queensland)

  • John Quiggin

    () (Department of Economics, University of Queensland)

Abstract

The pattern of boom and bust that characterised the Australian economy from the early 1970s to the early 1990s currently seem to be a thing of the past as Australia enters its sixteenth year of uninterrupted expansion. The expansion has lasted twice as long as those of the 1970s and 1980s, which raises the question — why has it happened? one way of simplifying our approach to this question is to identify the major factors that previously precipitated major slumps or recessions. The major recessions of the mid 1970s, the early 1980s and the early 1990s, were induced by monetary policy and a determination by of the Treasury and Reserve Bank to slow an overheated economy. The first two policy-induced recessions were aimed primarily at fighting inflation. The recession of the early 1990s was a product of policy attempts to slow the economy in the face of a combined current account crisis and domestic financial overheating, particularly the credit-fuelled asset price inflation of the late 1980s. Our main task in this paper is to try and explain why these earlier recessionary drivers have thus far largely abated during the current expansion. This involves tracing two processes, the economic problems in question, and the policy responses to them, especially the monetary policy responses
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Stephen Bell & John Quiggin, 2007. "Beyond Stop/Go?: Explaining Australia’s Long Boom," Australian Public Policy Program Working Papers WPP07_3, Risk and Sustainable Management Group, University of Queensland.
  • Handle: RePEc:rsm:pubpol:p07_3
    as

    Download full text from publisher

    File URL: http://www.uq.edu.au/rsmg/WP/WP_P07_03.pdf
    Download Restriction: no

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rsm:pubpol:p07_3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Adamson). General contact details of provider: http://edirc.repec.org/data/rsmuqau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.