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ID number:150325
Evaluation:
Published: 13.07.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The stance of fiscal policy has certainly changed over recent years. During its first two terms in office the Howard Government used fiscal policy as a macroeconomic tool to achieve 'balanced budgets'. However, the last two budgets have reflected the changing stance of fiscal policy. Fiscal policy has shifted away from being used as a macroeconomic tool of economic management. Rather, monetary policy now plays the major role in influencing the macro-economy. However, it must be recognised that this change in stance has only been carried out over the last two budgets during times of relative economic prosperity and will be tested when economic conditions are less favourable. As Gittins writes: 'It will be a very different story once the next recessions arrives'.…

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