KEY ISSUES Context. With GDP growth below trend and the investment phase of the mining boom having passed its peak and beginning to decline, a key issue is how Australia can manage the mining-production/export phase and encourage broader-based growth. The main external risks include a slowdown...

This Selected Issues paper analyzes inflation dynamics in Australia, with a special focus on wages. The paper finds inflation dynamics in Australia are similar to what is seen in most advanced economies in recent quarters, with inflation primarily driven by cyclically sensitive components. While...

The 2022 Article IV Consultation discusses that with a rapid post-pandemic economic recovery and favorable terms of trade, Australia has reached a stronger cyclical position than many other advanced economies, with limited scarring. Inflation has risen to significantly above target, prompting...

While a carbon tax is widely acknowledged as an efficient policy to mitigate climate change, adoption has lagged. Part of the challenge resides in the distributional implications of a carbon tax and a belief that it tends to be regressive. Even when not regressive, poor households could be hurt...