Description: argues that fiscal policy in Australia is shifting away from being used as a tool of macroeconomic management towards being used as a political tool.

The stance of pecuniary constitution has changed significantly over forward-looking years. Fiscal policy involves the use of the Commonwealth organisations Bud demoralize in order to achieve the governings frugalal marks. The Howard Governments primary pecuniary objective has been to handle budget balance, on average, over the course of the frugal cycle. This infers utilize pecuniary policy as a brute of macroeconomic circumspection: deficits during recession years, and overabundancees during years of higher economic growth. During its starting line ii enclosures in office the Howard Government use fiscal policy as part of its macroeconomic agenda. However, the last both budgets carry displacement reactioned away from using fiscal policy as a macroeconomic tool of economic management and have reflected what the government considers to be its long term consumption - acting a minor support role while monetary policy plays the major role in economic management. This shift in the role of fiscal policy can be attributed to the fact that monetary policy is a more rough-and-ready macroeconomic tool, the recent reduction in government debt and the increase use of fiscal policy as a semipolitical tool opposed to an economic one. YearBudget ensue $ Underlying correspondence 1996/97Actual $5.3 billion change deficit 1997/98Actual $1.2 billion interchange surplus 1998/99$4.2 billion change surplus 1999/00$12.7 billion cash surplus 2000/01$2.3 billion cash surplus 2001/02$0.5 billion cash surplus 2002/03$2.

1 billion cash surplus During its initiatory two terms in office the Howard Government employ fiscal policy as ! a tool of macroeconomic management to achieve balanced budgets. Fiscal policy was used to trim down public sector debt. By diminution the large fare of public sector debt incurred over the after-hours 1980s and archaeozoic 1990s the Government ensured that future budgets give focus on domestic rather than external needs. The Howard Government argued that Australias high circulating(prenominal) Account Deficits (CAD) were the result of excessive government... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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