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the OECD countries, Australia did not even have a recession. In this paper we study the behaviour of the Australian … economy compared to some of the OECD countries and see that, in fact, Australia has a "miracle economy". The comparisons are … made in terms of several macroeconomic indicators, GDP, Unemployment, Inflation, Current Account Balances, and debt. …
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The paper uses a small open economy general-equilibrium model to compare fiscal and nominal exchange rate devaluation with respect to their impact on economic activity and the current account. In particular, it investigates to which extent fiscal devaluation mimics nominal exchange rate...
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