This 2007 Article IV Consultation highlights that the lengthy expansion brought the Australian economy to a position of near full employment. Inflation had eased in late 2006 and early 2007, but accelerated in the second quarter. The current account deficit was 51⁄2 percent of GDP in 2006. The...

Property price inflation has accelerated during the last few years, propelled by low mortgage rates, poor returns from alternative investments, strong employment and immigration, and tax incentives. Strong housing demand has led to a substantial rise in housing prices. Most industrial countries...