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dc.contributor.authorMakin, Anthony J.
dc.contributor.editorNguyen, Tom
dc.date.accessioned2020-01-16T08:02:46Z
dc.date.available2020-01-16T08:02:46Z
dc.date.issued2010
dc.identifier.issn1837-7750
dc.identifier.otherRePEc:gri:epaper:economics:201006
dc.identifier.urihttp://hdl.handle.net/10072/390351
dc.description.abstractThis paper examines the impact of global financial crises on the Australian economy and how monetary and fiscal policy may be used to manage economic downturns that result. To do so, it presents a straightforward analytical framework incorporating financial wealth, exchange rate expectations, foreign demand and interest rate risk to analyse the key role played by the nominal exchange rate in insulating national income from the worst effects of foreign financial crises. In the event the economy is not fully insulated by exchange rate depreciation, it shows that, in principle, monetary policy is a superior instrument to fiscal stimulus for restoring aggregate demand to the full employment level. Since monetary policy is not handicapped by numerous problems that render fiscal stimulus less effective, it should normally be considered a sufficient instrument on its own.
dc.format.extent19 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto19
dc.subject.keywordsF33 - International Monetary Arrangements and Institutions
dc.subject.keywordsF31 - Foreign Exchange
dc.subject.keywordsF41 - Open Economy Macroeconomics
dc.subject.keywordsGlobal financial crisis
dc.subject.keywordsNational income
dc.subject.keywordsExchange rate
dc.subject.keywordsMonetary policy
dc.subject.keywordsFiscal stimulus
dc.title2010-06: How Should Macroeconomic Policy Respond to Foreign Financial Crises? (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicEconomics and Business Statistics
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2010
gro.hasfulltextFull Text
gro.griffith.authorMakin, Tony J.


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