This Working Paper presents an overview of structural budget balance models and the adjustments most relevant for Australia. Three models (the OECD model, the IMF model and Treasury’s previously published model in the Australian Government’s 2009-10 Budget and McDonald et al (2010)) are...

This paper examines the empirical relationship between government debt and the real interest margin between Australian and US 10 year government bond yields. Results for the period 1990 to 2009 suggest that Australian general government net debt has no impact on the short run real interest...

The size of the imbalance in China’s external payments suggests that the RMB is significantly undervalued. This does not appear to have had significant adverse effects on the Chinese economy to date, but the costs of holding down the exchange rate are likely to rise in the future. While the...