1. Economic Objectives

2. Internal Balance
Economic Growth Aim = 3% - 4% Currently = GDP growth 2014 Full Employment Aim = Natural rate of unemployment 5% Currently = unemployed Price stability = low inflation Aim = 2%-3% Currently =

3. External Stability Current Account Deficit Aim = -4%-5% GDP
Currently = GDP (2013)
Exchange rate
Aim = relatively stable
Currently =$ US
TWI
Currently=
Net Foreign Liabilities
Aim = 50% GDP
Currently = GDP

4. Environment Environment Aim = Ecological Sustainable Development
How?- increased funding for environmental
issues- salinity, alternative energy, Murray River,
National Heritage Trust, Kyoto signed
Carbon Emission Tax??????

5. Distribution of Income
Redistribution of income
Aim = decrease poverty by redistribution of
income
Currently = Govt redistributes income via
progressive income tax and welfare payments.
Economic growth has decreased unemployment
but some microeconomic policies have tended
to indirectly increased inequality- enterprise
bargaining , tariff cuts and GST

6. Conflicting Goals
Economic growth, price stability, full employment – Phillips Curve
Economic growth and external stability
Economic growth and ESD
Economic growth and income distribution
What has Australia achieved over the last 10 years?
Low inflationary sustainable economic growth

7. 2014 Govt goals and policies
Outline each of the goals page
Policy Mix - this is a very concise summary page
Low inflationary sustainable economic growth