Fiscal consolidation and its effect on interest rates

McDowell, Russell. (1997). Fiscal consolidation and its effect on interest rates Honours Thesis, School of Economics, The University of Queensland.

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Author McDowell, Russell.
Thesis Title Fiscal consolidation and its effect on interest rates
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 1997
Thesis type Honours Thesis
Total pages 84
Language eng
Subjects 14 Economics
Formatted abstract
Australia's Commonwealth government commenced a policy of fiscal consolidation in 1996-97. It is often argued that reducing budget deficits will lower interest rates or that• higher budget deficits raise interest rates. Much of this debate neglects the fact that part of the budget position of the Commonwealth government is endogenous or cyclical and is therefore self correcting. The component that is not self correcting is the structural budget deficit (surplus) which is equivalent to the budget balance at full employment. It is this component which should be of concern when assessing the impact of fiscal policy.

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
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Created: Thu, 25 Nov 2010, 11:56:51 EST by Ning Jing on behalf of The University of Queensland Library