Logo

Make a tax-deductible donation to support CEDA's agenda and help accelerate change

Find out more

Join CEDA Support us
Economy

Information paper - Macroeconomic policy: avoiding the cliff

In the first paper in the CEDA Council on Economic Policy Economic Recovery Series, Professor Percy Allan and The Hon. Dr Craig Emerson consider the need for new macroeconomic policy to avoid the 'cliff' marked by the end of the Federal Government's initial support measures in September

"There is a serious risk that the Australian economy will relapse into deep recession once most of the existing fiscal relief measures expire at the end of September 2020. To avoid that fate, the Federal Government should adopt another large round of fiscal stimulus."

- Professor Percy Allan &  The Hon. Dr Craig Emerson

Downloadable resources
INFORMATION PAPER - MACROECONOMIC POLICY: AVOIDING THE CLIFF  (PDF 1846KB)

For policy makers the burning issue is how to prevent the Australian economy suffering a double-dip collapse after existing income and other Federal Government support measures designed to offset the effects of the COVID-19 pandemic expire in late September 2020.

The Federal Treasurer, Josh Frydenberg, will provide an updated economic and fiscal outlook on 23 July, which is expected to outline some features of the government’s fiscal strategy ahead of its full budget on 6 October 2020. 


This paper canvasses the broad fiscal and monetary policy options to avoid an economic cliff at the end of September 2020 and to revive the economy thereafter to limit any ongoing trauma from COVID-19.
  

Our Related Research

Economy October 18, 2024

More transparency needed on international student caps

The Federal Government's new cap on international students has come at a time of public debate about the impact of migration on housing affordability and availability. But targeting student migration does not address the many complex challenges Australia faces on housing.

Read more Economy February 16, 2021

Economic and Political Outlook 2021

CEDA’s 2021 Economic and Political Outlook (EPO) report examines why governments should seize opportunities that deliver long-term economic and social benefits to secure Australia’s recovery from the COVID-19 pandemic.

Read more Economy December 3, 2013

2013 Big Issues survey results

Results of the CEDA/Business Spectator Big Issues survey for 2013 show that priority areas for the Federal Government should be enhancing productivity, competitiveness and innovation and taxation reform.

Read more

Like our research?


Make a donation today to directly support CEDA’s independent research, tackling the big issues for Australia. Click here.
(Donations over $2 are tax deductible)