Description
Australia's distinctive economic achievement in the period 1971-4 was to get herself into an appalling macro-economic mess when there was no fundamental reason for this. Virtually alone amongst the developed countries, she was well placed to benefit from the high food prices of 1973 and the high fuel prices of 1973-4. She was also well placed to attract capital from the countries flush with petro-dollars. Instead, Australia suffered a period of stagflation as serious as almost any other country's in the Western world. How did this happen?
Professor Perkins in this revised edition of Macro- economic Policy in Australia examines this question. He brings the previous edition, based on the pamphlet Anti-cyclical Policy in Australia, up to date with new material relating to 1970-4. He concludes that had the lessons of the 1950s and 1960s been applied in this period, Australia would have enjoyed a lower rate of inflation and a higher and more stable rate of growth. Instead, thinking on the exchange rate, interest rates, tax rates and the relationship between capital inflow and inflation remained confused-to Australia's loss.
All those who enjoyed the immensely successful first edition of Macro-economic Policy in Australia will wel- come this revised edition. It will interest especially the student and general reader concerned with Australia's contemporary economic problems.
