A triumph for Australian economic policy makers

Today’s news that the Australian economy actually grew during the March quarter is remarkable. Sure we’re not out of the woods yet but the contrast between Australia’s performance and that of much of the rest of the world is notable. It appears that exports and consumer spending have been the main factors in the favourable result. Of course, our export performance partially reflects the actions of the Chinese Government and the consequent strength in the Chinese economy. But, Australia’s economy is well-positioned to take advantage of the Chinese performance because successive Australian governments, dating back at least to Hawke’s decision to float the currency in December 1983, have embraced the idea of an open economy backed by a good regulatory framework. Second, the massive stimulus packages by the Rudd Government have only been possible because of the fiscal efforts of the Hawke, Keating and Howard Governments. Sure, the Keating and Howard Governments can be faulted on the fiscal front, but again compared to many countries Australia has been a stellar performer.