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Government Policy

• Promote free trade
• Deregulate the labour market
• Deregulate the financial market
• Improve efficiency in Government
• Reform of Government taxation
• Schemes to promote exports
• International trade agreements that promote exports

Goal of External Stability

The goal of external stability is for Australia to pay its way in external ‘international’ transaction.

• Net Foreign Trade – less than 6% of GDP
• Current deficit no more than 3% of GDP
• Stable exchange rate

Government Policies

Cutting tariffs and other forms of protection
• Decreas...