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Assesses the Australian Green Paper entitled 'Restoring Full Employment,' released by the Australian Committee on Employment Opportunities in December 1983. Determinants of the economic growth rate; Relation between economic growth and unemployment rates; Use of the Access Economics Model to predict changes in the unemployment rates.

The effects of monetary policies remain always an important topic in macroeconomics. In the literature (closed and open economy), there is no theoretical as well as empirical consensus regarding the effects of monetary policies. In this paper we examine the real effects of inflation in an open economy. Australia is a classic example of a small open economy and is known to exercise inflation targeting. Using quarterly data from Australia and employing vector autoregressive (VAR) analysis, we provide evidence that inflation, both in the short and long run, negatively affects durable and non-durable consumption and investment, and has a positive effect on the current account. Further, we show that consumption of durable goods is more sensitive than the consumption of non-durables during the initial periods following inflationary shocks. [ABSTRACT FROM AUTHOR]

This article examines the prices of housing in Australia and recommends several policy options. This paper draws on a collaborative research program that examined Australia's housing affordability problem. The author contends that the problem is not due to current factors but has arisen from many decades of policy. She also states that renters in housing stress is a significant problem and needs to be addressed through a reorientation of government policy. It should encourage increasing the supply of rental housing.

This paper examines the ability of standard economic factors to explain the growth of real house prices in Australia's capital cities. Dynamic models are estimated for each city with the objective of identifying the major drivers of house price growth rates. The variable mortgage rate is found to be an important influence on growth rates in all eight capital cities. However, the size of the mortgage rate effect can differ substantially between cities. For example a 25 basis point rise in the mortgage rate reduces the long-run quarterly growth rate of real house prices by about 1 per cent in Sydney compared with only 0.4 per cent in Adelaide. The effects of other economic variables are less systematic, significantly affecting the growth rate of capital gains in some cities but not in others. Nevertheless, for most Australian cities economic factors are found to explain around 40 to 60 per cent of the variation in the growth rate of house prices. [ABSTRACT FROM AUTHOR]

The article introduces several papers in the issue that discuss the problem of education and skill mismatches in the Australian labor market. The problem is not unique to Australia, as evidence exists that significant mismatching of jobs and workers exists in the U.S. and Europe. Persons with educational levels exceeding what their jobs demand earn less than similarly educated but better-matched employees. Conversely, undereducated people enjoy a small wage premium. Overeducation can plague a person for years. Training can be useful in boosting the earnings of both undereducated and overeducated employees. Further data and studies are needed to better understand the issue.

This article examines the housing market of Australia, where a declining rate of affordability is threatening overall economic stability. The author wonders if the household sector is more vulnerable to economic shocks than in the past and, if so, what are the consequences for economic policy. The easier availability of credit have played an important part in increasing demand but high housing costs relative to income are not necessarily a problem. To consider the situation the Melbourne Institute hosted a Housing Affordability Forum.

The article discusses education and skill mismatches in the Australian labor market. Reality belies the notion that a higher skill level invariably produces a higher income. Employees with education beyond what the job demands earn less per year of education than do workers better-matched to their jobs. Data show the proportions of overeducated and undereducated in the Australian work force are 14% and 16%, respectively. Research indicates additional training is effective in addressing undereducation.

The article discusses factors that contributed to the rise in household debt, focusing on the ways that these factors have differed across countries in the lead up to the global financial crisis in Australia. It considers the implications of higher indebtedness for the potential for households to suffer financial distress or to rein in their expenditures. It examines developments leading up to the global financial crisis, focusing on the factors that could influence household vulnerability.

The article discusses overeducation and undereducation in Australia. Forty percent of Australian employees have either too many or insufficient skills for the jobs they hold. Undereducated persons earn more than those of the same education but in better-matched jobs, while overeducated persons earn less than their well-matched brethren. Overeducation plagues roughly fifty percent of university graduates and exists among all fields of study and job categories. Overeducation is particularly acute for new university graduates and immigrants.

Provides an overview of the economy of Australia as of December 1996. National accounts; Progress of actual unemployment against the proposals of the 1993 Green Paper taskforce; Prices and earnings; National debt and productivity; International trade; Australian dollar movements.

The article presents the editors' report for the journal's coverage from 2007 to 2010. They state that the journal focuses on contemporary economic topics relevant to Australia. They add that the journal continued to use the established format of invited and contributed articles, and other sections which covered health system, taxation, and retirement. They present several charts depicting published articles and submissions. The editors acknowledge people who contributed to the journal.

We conjecture that a 'secondary services boom' is primarily responsible for the widespread nature of the gains in employment during Australia's recent 'China boom'. An economy-wide model provides numerical theory for constructing hypotheses, which are tested econometrically. Predictions that include a services expansion and de-industrialisation are tested against pre-boom data and out-of-sample simulations through the boom. The secondary services boom appears clearly in both income and employment, though the effects on manufacturing are ambiguous, with stronger-than-hypothesised observed performance, suggesting that changes in industrial structure and the composition of assistance have favoured surviving manufacturing firms. [ABSTRACT FROM AUTHOR]

The article discusses the uncertainties and challenges of the economic condition of Australia in 2015-2016. It outlines the important economic trends in 2014-2015 that are remnants of the 2013-2014 including the sluggish growth of the domestic final demand. Also emphasized are impact of China's economy on the uncertain macroeconomic outlook and the anticipation that subdued wage growth, increased unemployment rate and weak growth on domestic demand will likely to persist.

This article assesses trends in income inequality and household income levels in Australia since the 1980s, as well as the different causal factors associated with these trends in different periods. Selected socioeconomic outcomes-health, crime and punishment-are discussed and the article argues that trends in these outcomes appear more likely to be related to trends in these causal factors, rather than changes in income inequality, per se. [ABSTRACT FROM AUTHOR]

Over the past decade, Australian multi-factor productivity growth has been predominantly negative, often leading to the view that there is a 'productivity problem' . It is shown that it is not a useful measure and is thus misleading. Exploratory econometric investigations suggest that economies of scale are the primary drivers of productivity growth. However, more research needs to be undertaken to understand the determinants of these economies of scale before any new policy to promote productivity growth is designed. There needs to be greater understanding of the underlying process of innovation that gives rise to economies of both scale and scope. [ABSTRACT FROM AUTHOR]

This article explores whether proposed changes to the regulation of synthetic securitisation in Australia are sufficient in light of the Global Financial Crisis. Synthetic securitisation is specifically chosen as an object of study, given the relative ease with which it can be over-used. The article examines several theoretical problems with securitisation, which entice corporations into excessively risky behaviour. Contrary to popular belief, it is established that agency issues are not a serious problem with securitisation. Instead, managerial behavioural biases are shown to be most problematic. The article recommends stricter capital adequacy relief requirements, which would provide a disincentive for excessive risk-taking by potentially over-confident managers. [ABSTRACT FROM AUTHOR]

Events surrounding the global financial and economic crises of 2008 and 2009 have sparked a renewed interest in discretionary fiscal policy. This article considers whether private saving in Australia behaves in a manner that is consistent with Ricardian equivalence, thus mitigating the effects of fiscal policy, or conversely, if fiscal policy has some ability to influence the real economy. Results indicate that, while there is not a full Ricardian response to changes in the fiscal stance, there is some partial offsetting behaviour—implying that fiscal policy does elicit some (limited) impact on economic activity. [ABSTRACT FROM AUTHOR]

The article presents an overview of the economic condition of Australia from 2009 to 2010. It states that a decline in the gross domestic product (GDP) was noted in 2008 due to decreased overall industrial productivity as a result of the global financial crisis. It mentions that GDP increased in 2009 due to the increasing export demands of China. It also presents several tables depicting the economic indicators including inflation, unemployment rate and GDP growth.

The article discusses the applicability of the macroprudential policy on the economic condition of Australia. Topics discussed include the impact of the structural pressures from the emerging countries and the move of the Reserve Bank of Australia (RBA) in reducing the interest rates when commodity cycle turned unfavorable. Also emphasized are the proposed tools relevant on the macroeconomic prudential policy including the limitations on credit growth and capital adequacy ratio.

The article discusses the impact of the global financial crisis (GFC) to Australia's financial system industry. The GFC's impact on Australia's financial services industry include the increased dysfunctional behavior of markets such as the dramatic reduction in credit and liquidity. The two most substantial interventions during the GFC were the introduction of a guarantee of bank deposits, and the banning of short-selling activity.

For economists, the main test of a microeconomic policy change is its effect on efficiency: gains minus losses, equally weighted. However, it is standard economics that individuals value losses more than gains. Moreover, imposing large, uncompensated and uninsurable policy-induced losses would be widely regarded as unfair, when they are merely collateral damage from policy action. The article argues the case for adjusting the calculation of efficiency to take account of this ‘unfairness’ and discusses how it could be done. The context is the relatively recent acceptance in Australia of competition, if planned and regulated, as being generally socially beneficial. [ABSTRACT FROM AUTHOR]

The article discusses the impact of the current economic slowdown on the Australian labour market. It mentions the possibility of an increase in unemployment due to global economic downturn and reports the situation of the country's labour market in the past three recessions. It gives an overview of the recessionary phases faced by the labour market since 1970 and discusses the changes that occurred in the unemployment rate during those phases. It mentions the association between the changes in unemployment and the gender distinction in labour force, and gives the industry-specific description of recession's effects on employment. It also discusses the impact of recession on long-term employment, patterns of job searching, and young and old employees.

The article focuses on the ways to measure household wealth in Australia. It reports the increase in Australia's household wealth in the past 20 years. It discusses and compares four principal measures of the country's household wealth including the Reserve Bank of Australia's (RBA's) quarterly time series measure, the Australian Bureau of Statistics' (ABS') annual time series measure, and wealth distribution measures based on the Household, Income and Labour Dynamics in Australia Survey, and the Survey of Income and Housing. It reports various fundamentals of household wealth, and presents a comparison between several data sources used in construction of tangible assets of household wealth. Also discussed is the allocation of wealth across Australian households.

The article provides an overview of the Australian economy in the context of a global financial crisis, including a decline in commodity prices. Inflation caused by commodity demand, the international credit crisis, and the Australian housing market is discussed, and an analysis of the Australian states and industries which are likely to be most affected by a recession is presented. It is noted that Australian trade with China is likely to ameliorate the impact of recessionary forces, while the Australian government's economic policies are judged to be suitable for mitigating recessionary pressures.

The article analyzes Australian state occupational data and discusses what this data says about macro wage equations in Australia. Details about the labor markets and unemployment situations in various Australian states are provided. The impact of the mining boom in Australia on wage inflation is explored and analyzed on a state-by-state basis. The difference in annual wage gains in the states of Western Australia, Queensland, and South Australia is explored. The impact of state-based wage movements on Australian economic policy is also investigated.

This article examines the prices of housing in Australia and recommends several policy options. The housing price to income ratio rose from 5:3 in 1997 to 9:1 in 2007. Demand is far exceeding supply of new housing. Growth in household formation, rising incomes and a very strong immigration program are adding to the demand. Among their suggestions, the authors describe the need for greater investment in infrastructure development and tax policies that promote savings to counter rising household debt.

This article examines the prices of housing in Australia and recommends several policy options. House prices in Australia have been trending upwards in real terms for several decades. The authors hope to determine if there truly is a housing crisis by examining the rate of housing stress. Other factors are difficulties in paying the rent or mortgage; whether or not households are behind in their mortgage repayments; and movements to and from home ownership. They found housing stress at upper income levels but not among low-income owners and renters.

The article examines the consumer price index (CPI) of Australian consumer inflation and contrasts CPI measures with non-consumption measures of inflation in the Australian economy. It is indicated that the CPI measures headline inflation in the household sector, while the trimmed mean and weighted median measures attempt to capture underlying consumer inflation. The underlying measures exhibit lower volatility and higher autocorrelation levels than their headline counterpart. It concludes that the unconditional contemporaneous correlation between consumption and non-consumption measures is insignificant.

The article discusses overskilling in Australia. An overskilled employee is one who believes his or her skills and abilities (but not necessarily education) exceed those required by the job. Surveys suggest that over 42% of full-time employees consider themselves either severely or moderately overskilled. Overskilled people earn less than persons who are equally skilled but better-matched to their jobs. The proportion of severe overskilllling is lowest among persons with a university-level education, but the economic cost to these people in terms of low wages is highest. Overskilling can be temporary if a person repeatedly seeks new work.

Most economic assessments conclude there is no economic efficiency case for governments to provide drought assistance. However, significant public funds are allocated to farmers during droughts and there is a second-best case to improve drought policy design. In this article we show that the National Drought Policy suffers from adverse selection, moral hazard, incentive compatibility and government commitment problems. We use ABARE farm-level data that suggest that at least adverse selection was a problem in Victoria during the 2002-03 drought. These results are replicated at the national level. The current approach of the Commonwealth and state governments is ineffective because it is very difficult to design an efficient and fair drought policy that relies on ex post revelation of information. An alternative approach is investigated where incentives are designed so that farmers self-select into one of a number of drought policy agreements consistent with their capacity to prepare for drought. [ABSTRACT FROM AUTHOR]

This article examines changes in industry skill scores for Australia for the period 1991 to 2001 using indices of cognitive skill for industry based on Census employment data. Changes in mean industry cognitive skill levels are analysed, as are the relative contributions of changes to the occupational structure within industry and changes to the industry structure of employment. The main findings are that the drivers of skill change differed substantially between the two Census periods. Prior to 1996 the majority of the change was due to shifts towards industries with a more highly skilled workforce. After 1996 changes in the economy-wide skill level were dominated by within-industry changes in occupational composition. This coincided with a sharp pickup in the rate of capital expenditure on information and communication technologies. The increasing use of part-time employment overall had a deskilling effect. [ABSTRACT FROM AUTHOR]

Presents information on a study which investigated the relationship between inflation and unemployment in Australia since 1959. Correlations between inflation and unemployment; Importance of non-accelerating inflation rate of unemployment (NAIRU) in the design of monetary policy; Results of the study.