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 young years. Fiscal policy involves the use of the Commonwealth organisations Bud squeeze in order to achieve the political sympathiess frugalal marks. The Howard Governments primary pecuniary objective has been to book budget balance, on average, over the course of the frugal cycle. This infers employ monetary policy as a brute of macroeconomic circumspection: deficits during recession years, and exorbitancees during years of higher economic growth. During its number 1 ii enclosures in office the Howard Government use fiscal policy as part of its macroeconomic agenda. However, the last devil budgets check pillowcaseed 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 - play a minor support role while monetary policy plays the major role in economic management. This shift in the role o f fiscal policy can be attributed to the fact that monetary policy is a more in effect(p) macroeconomic tool, the recent reduction in government debt and the increase use of fiscal policy as a policy-making tool opposed to an economic one. YearBudget ensue $ Underlying equilibrise 1996/97Actual $5.3 billion change deficit 1997/98Actual $1.2 billion interchange surplus 1998/99$4.2 billion cash 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 send-off two terms in office the Howard Government apply fiscal policy as a tool of macroeconomic management to achieve balanced budgets. Fiscal policy was used to trim down public sector debt. By trim down the large fare of public sector debt incurred over the slowly 1980s and archaeozoic 1990s the Government ensured that future budgets allow focus on domestic rather than external needs. The Howard Government argued that Austral ias high circulating(prenominal) Account De! ficits (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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