The Costs of COVID: Australia's Economic Prospects in a Wounded World

Australia is emerging from the pandemic sooner and at less economic cost than widely expected, but with higher unemployment and elevated debt. As the pandemic recedes, it is evident that global output and demand will recover slowly and unevenly. Major advanced economies have sharply increased govern...

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Bibliographic Details
Main Author: Edwards, John
Format: Non traditional textual works
Language:English
Published: Lowy Institute 2020
Subjects:
Online Access:https://www.lowyinstitute.org/
http://hdl.handle.net/20.500.11937/80703
Description
Summary:Australia is emerging from the pandemic sooner and at less economic cost than widely expected, but with higher unemployment and elevated debt. As the pandemic recedes, it is evident that global output and demand will recover slowly and unevenly. Major advanced economies have sharply increased government debt and their central banks have driven interest rates to rock bottom while buying big shares of additional government debt. At the same time, the US–China quarrel has become more intense, and Australia’s relationship with China has deteriorated. All these changed circumstances, much amplified and extended from their pre-pandemic appearances, limit Australia’s choices.