Australia in 2005

            
 
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Case Details:

Case Code : ECOA127
Case Length : 14 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : Australia
Industry : -

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Introduction

Australia, had emerged as one of the most dynamic economies in the world in recent times. The country's recovery was impressive considering that in the 1980s, it had faced a crisis of sorts. Australia had been on its way to becoming a banana republic in the words of the then treasurer (finance minister), Paul Keating.

Keating and prime minister Bob Hawke, implemented tough measures such as the near-elimination of tariffs, the floating of the exchange rate, the first introduction of enterprise-level rather than industry-wide pay bargaining that broke the power of Australia's unions, bank deregulation and compulsory saving for pensions.

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The Labor reforms, supported by the opposition Liberal Party, virtually transformed Australia. The country became a model of economic liberalization for countries across the world. Many analysts considered Australia to be one of the best places in the world to do business. In 2005, as it entered its 15th successive year of continuous growth, Australia enjoyed low inflation, the lowest unemployment for almost 30 years, negligible government debt and regular budget surpluses...

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