Does trade affect the equilibrium rate of unemployment? To theoretically examine this question, we incorporate firm‐union bargaining considerations into a model with a booming external sector and a stagnating manufacturing sector. In the model, a sustained improvement in the terms of trade...

Fiscal vulnerability, like a contagion, poses a threat to financial sector stability, which can lead towards sovereign default. This study aimed to assess fiscal vulnerability to crisis by investigating the Australian economy's gross public debt, net public debt, and net financial liabilities....