Australia: Selected Issues
September 12, 2005
Download PDF
More Formats on IMF eLibrary
Order a Print CopySummary
This Selected Issues paper reviews how Australia’s economy has adapted to a flexible Australian Dollar. The paper provides a background on the float and the initial policy challenges. It discusses the main elements of the Future Fund proposal, and estimates how much Australia and other countries in the Asia-Pacific region would gain from greater financial integration. The results suggest that these welfare gains are large, giving an argument in favor of a progressive capital account liberalization across the region, once the needed supporting measures are in place.
Subject: Expenditure, Financial institutions, Financial markets, Foreign exchange, Labor
Keywords: Asia and Pacific, Asia index, asset price, Australia, certainty-equivalent wealth, CR, diversification, diversification increase, Exchange rates, FF investment, FF portfolio, FF proposal, Financial integration, gain, gains from diversification, Global, investor, ISCR, Pension spending, Pensions, stock index, Stocks
Pages:
42
Volume:
2005
DOI:
Issue:
330
Series:
Country Report No. 2005/330
Stock No:
1AUSEA2005001
ISBN:
9781451802078
ISSN:
1934-7685
