Since 1996 the official use of monetary targeting has helped to contain inflation within the target's range of 2-3%, except for the introduction of the GST in 2000 If inflation was not contained then it will lead to consumers suffer a loss of purchasing power and real income, if consumer income does not keep up with inflation thus decreasing Australia's living standard as goods and services will be more expensive. ... Monetary policy is the main line of defence for government to tackle inflation as it is the fastest to affect the economy while fiscal policy plays a support role in m...

• Word Count: 1503
• Approx Pages: 6
• Has Bibliography
• Grade Level: Undergraduate

The economic stimulus applied by the Australian government to promote recovery included expansionary monetary policy, with fifteen cuts in interest rates between January 1990 and July 1993. ... Fiscal policies were also applied with One Nation Statement released in February 1992, providing 2.3billion dollars of extra spending and tax cuts to promote recovery and confidence in the econom...

• Word Count: 2293
• Approx Pages: 9
• Grade Level: Undergraduate

This may be due to the government and central banks introducing wide-ranging policies, including sizeable fiscal stimulus, large reductions in policy interest rates, guarantees of bank debt issuance, and in some cases, sizeable government ownership of troubled financial institutions. ... The International Monetary Fund (IMF) forecasts growth of three per cent in 2013, and an average annual rate of 3.2 per cent from 2012 to 2017. ...

• Word Count: 2267
• Approx Pages: 9
• Has Bibliography
• Grade Level: Undergraduate