Drought and the Australian Economy

Summary
The Australian Government's objective during the drought period was to achieve a balance over the economic cycle. Australia's credibility was enhanced through the charter of budget honesty legislation in 1998. The charter provided framework for the conduct of sound financial management with the government fiscal policy. Australia's structural reforms have vastly improved productivity and the ability of Australian exporters to adapt to change. The above shows the ability of the Market economic system to react quickly to sudden changes.
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