Conquering Fear of Floating--Australia's Successful Adaptation to a Flexible Exchange Rate

 
Author/Editor: Beaumont, Craig ; Cui, Li
 
Publication Date: July 01, 2007
 
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Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Australia has enjoyed fifteen years of uninterrupted economic expansion since 1992 despite shocks such as the Asian crisis in 1997-98 and the information technology bust in 2000-01. This resilient economic performance owes much to wide-ranging structural reforms and the improved frameworks for monetary and fiscal policies that were implemented after the Australian dollar was floated in 1983. In addition to gaining the expected macroeconomic benefits from exchange rate flexibility, the float appeared to help motivate and facilitate the subsequent reforms. Australia's experience with adapting to a floating currency may therefore be of broader interest.
 
Series: Policy Discussion Paper No. 07/2
Subject(s): Floating exchange rates | Flexible exchange rates | Australia

 
English
Publication Date: July 01, 2007
Format: Paper
Stock No: PPIEA2007002 Pages: 24
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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