Abstract
This chapter considers the influence of fiscal policy on postwar economic growth and comprises three main parts. The first describes trends in the level and composition of government outlays and receipts and discusses their influence on postwar economic growth in the context of relevant international comparisons. The second considers the effectiveness of fiscal policy in stabilising postwar economic growth and focuses on four episodes, drawing on estimates of the changing stance of fiscal policy over these periods. Finally, the effects of a sustained shift in the stance of fiscal policy, financed through a change in bond sales, on the capital account of the balance of payments are examined by simulating the Australian Medium-Term Simulation (AMPS) model of the Australian economy.
The authors are indebted to A. Pawsey for valuable research assistance and the preparation of charts, and to B. Taplin for assistance in the design of simulation experiments. They have also benefited from comments made by the discussants at the conference. However, the views expressed are their own and do not necessarily reflect those of their employer or their colleagues.
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© 1989 Centre for Economic Policy Research
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Johnston, N., Harrison, D., Hardham, M., Brooker, R. (1989). The Role of Fiscal Policy in Postwar Australian Economic Growth. In: Chapman, B. (eds) Australian Economic Growth. Palgrave, London. https://doi.org/10.1007/978-1-349-11084-1_7
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DOI: https://doi.org/10.1007/978-1-349-11084-1_7
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