This paper examines how distance and economic size influence the level of international trade. Parameters for an international gravity trade model are estimated and used to calculate annual expected aggregate trade for Australia over the last 20 years. This model also includes a new indicator of...

The relative performance of the Australian and New Zealand economies has been the subject of many questions. Why, if New Zealand reformed so much, has the Australian economy performed so much better? Why are average incomes in Australia so much higher than in New Zealand? This paper explores...

Productivity is the key driver of economic growth and prosperity over the long run. It is possible to think of Australia's productivity growth as consisting of two elements: Australia's productivity catching up to its steady state level relative to the global technological frontier; and an...

Productivity trends greatly influence the future size of an economy, its ability to meet the challenges of an ageing population, and the setting of both fiscal and monetary policies. This paper estimates trend growth in productivity (GDP per hour worked) in Australia since the late 1970s....

The International Monetary Fund (IMF) is a cooperative institution established to meet the common objectives of international financial stability and economic growth. The IMF's legitimacy and effectiveness in fulfilling these objectives depends critically on its ability to adequately represent...

The paper reviews the role of the IMF since its inception in 1944 and discusses some of the challenges for the IMF, and the international community more broadly, arising from recent developments in the world economy. It proposes that the IMF's role up to the end of the 1970s evolved in a broadly...

As in all the other major economies, China’s macroeconomic policy framework was put to the test during the global financial crisis. China applied one of the world’s largest stimulus packages. The package provided a very rapid boost to activity in the Chinese economy, with empirical evidence...

In recent years, employment has grown strongly while output has grown modestly. This implies a weak growth in labour productivity that is difficult to interpret. In this article, we explore some possible explanations for recent economic growth and labour productivity outcomes, with a focus on...

The United States has long been considered the world’s productivity frontier, maintaining a sizeable aggregate productivity gap with Australia over the past quarter century. This paper finds that Australia’s industry structure does not appear to make a major difference to Australia’s...

In recent years, a series of studies have been undertaken in Australia that use static general equilibrium models with a representative household to compare the relative efficiency of different Australian taxes. This paper aims to complement these earlier studies and contribute to a broader...