In this paper a general equilibrium intertemporal model with optimizing consumers and producers is developed to analyze how the imposition of a temporary import tariff affects the path of real exchange rates and the current account. The model is completely real, and considers a small open...

This paper discusses the macroeconomic implications of trade reform in the presence of capital account restrictions. The latter is modelled by recognizing prior constraints on free currency convertibility that are imposed via the use of a multiple exchange rate system. The results of the...

This paper examines the macroeconomic impact of tariffs. Existing theoretical models do not provide clear-cut predictions concerning the co-movement between unilateral tariff changes and a set of macroeconomic variables consisting of the real exchange rate, the trade balance, and the level of...

This paper reviews developments in the Australian economy during the prolonged expansion of the 1990s. The focus is on developments in the real sector, public finances, monetary policy, and the balance of payments during 1996–97. The paper reviews longer-term developments in the labor market...

This Selected Issues paper examines the role that government policy in Australia plays in influencing household saving, both directly through its own saving and the structure of the tax, social security and welfare systems, and indirectly through the influence of the policy environment on...

This paper reviews developments in the Australian economy during 1994–95. In 1994/95, real GDP grew by 41⁄2 percent as growth in domestic demand accelerated sharply, rising by 63⁄4 percent, despite the impact of a severe drought on farm output. Business investment increased by 171⁄2...

This paper describes the developments in the Australian labor market during the 1990s. In 1994, a number of new labor market programs were launched, directed especially at the long-term unemployed, and a further step was taken in the evolutionary reform of the industrial relations system. The...

In this study, Australia’s economic performance from the onset of the global financial crisis is discussed. A healthy banking system, flexible exchange rate, and robust demand for commodities from Asia are important for good performance. Although recent global market volatility has increased...

This study relates Australian household saving more closely to movements in asset market using event study analysis and econometric analysis. In this study, the policy challenges for Australia from rebalancing in China, a temporary growth slowdown in China, and a recession in advanced countries...