Macroeconomic Policymaking for Small, Open Economies

An Australian Perspective

May 31, 2013


This seminar explores a number of pressing macroeconomic issues, including federal budget, the national debt, and unemployment, from the perspective of the Australian economy.

Questions to be addressed include:

How much policy flexibility do small, open economies like Australia gain from having a sovereign currency, as compared to larger economies like the United States?

How can small economies with floating exchange rates respond to international currency volatility or investment shocks?

Is export-led growth an effective strategy for small, open economies like Australia? Why/why not?

How successful has Australia’s recent macroeconomic approach been for achieving full employment?

What can policymakers learn from the Australian response to the global financial crisis?


Peter Kriesler
Associate Professor of Economics
Australian School of Business, University of New South Wales
Sean Carmody
Head of Credit Risk, Group Risk
Westpac Banking Corporation
William “Bill” Mitchell
Professor of Economics
Charles Darwin University
Geoff Harcourt
Visiting Professorial Fellow in Economics
University of New South Wales

Core Resources

The Australian Labour Market – 815 Thousand Jobs From Full Employment

Mitchell, William The Australian Labour Market – 815 Thousand Jobs From Full Employment., 2013.

Exchange Rate Management In An Era Of Global Financial Crises With Special Reference To Australia

Kriesler, Peter, G.C. Harcourt, and J.W. Nevile. “Exchange Rate Management in an Era of Global Financial Crises with Special Reference to Australia.” (2011).

 exchange rate.pdf

Modern Monetary Theory In An Open Economy

Mitchell, William Modern Monetary Theory in an Open Economy., 2009.

The Job Guarantee In A Small Open Economy

Mitchell, William. The Job Guarantee in a Small Open Economy.” The Path to Full Employment and Equity. 2000.