IMF Staff Country Reports

Australia: Selected Issues

Publication Date:

September 12, 2005

Electronic Access:

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Summary:

This Selected Issues paper reviews how Australia’s economy has adapted to a flexible Australian Dollar. The paper provides a background on the float and the initial policy challenges. It discusses the main elements of the Future Fund proposal, and estimates how much Australia and other countries in the Asia-Pacific region would gain from greater financial integration. The results suggest that these welfare gains are large, giving an argument in favor of a progressive capital account liberalization across the region, once the needed supporting measures are in place.

Series:

Country Report No. 2005/330

Subject:

Expenditure Financial institutions Financial markets Foreign exchange Labor