Fiscal policy needs to play bigger role

Original article by David Rogers
The Australian – Page: 27 : 12-Jul-19

HSBC Australia’s chief economist Paul Bloxham says the federal government’s tax cuts are likely to have a similar short-term economic impact as an 0.5 per cent reduction in the cash rate. Bloxham adds that there is plenty of scope for the government to stimulate the economy via fiscal policy, particularly given that there is limited capacity for monetary policy to provide further stimulus. He has also flagged the possibility of establishing an independent fiscal authority to co-ordinate fiscal and monetary policy.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA

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