| The International Monetary Fund has outlined the importance of fiscal policy as resource-rich countries such as Australia deal with the fallout of the end of the latest mining boom. “The experience of recent decades shows that many countries find it difficult to manage volatility around commodities,” the fund outlined in a new report overnight.
“Their public expenditure tends to significantly accelerate during price upswings and fall during downswings. This is how fiscal policy can play a major role in transmitting commodity price volatility to the domestic economy.”..............................................Full Article: Source
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