宏观经济学一题求助,关于monetary policy,The Australian government has placed the context of fiscal policy in a medium term framework to ensure that government finances remain sustainable over time.a) Explain the ‘medium term framework’

宏观经济学一题求助,关于monetary policy,The Australian government has placed the context of fiscal policy in a medium term framework to ensure that government finances remain sustainable over time.a) Explain the ‘medium term framework’
宏观经济学一题求助,关于monetary policy,
The Australian government has placed the context of fiscal policy in a medium term framework to ensure that government finances remain sustainable over time.
a) Explain the ‘medium term framework’ of fiscal policy and show how it relates to government finances.(5 marks)
b) Link the fiscal policy approach to that of monetary policy and comment on the recent actions of the Reserve Bank of Australia (in 2009 and 2010) in regard to monetary policy.(5 marks)
c) Given the current exchange rate regime,discuss which policy option is more effective in stabilising the economy.(5 marks)

宏观经济学一题求助,关于monetary policy,The Australian government has placed the context of fiscal policy in a medium term framework to ensure that government finances remain sustainable over time.a) Explain the ‘medium term framework’
A）
Treasury Secretary Henry said on Monday in Australia, the Australian government's fiscal stimulus program has provided support for the economy. Over time, private demand will gradually pick up, the need for the government to relax fiscal policy will subsequently weakened.
He also said the government's financial injection to boost retail spending, the second and third round of the medium-term macroeconomic fiscal program aims to provide support.
Henry also pointed out that the government's cash expenditure does provide support for the economy. He added that without this part of the expenses, the Australian unemployment rate has risen to 10.0%, while the current government is expected to peak at 8.5% unemployment rate.
He also said that as time goes on, private demand will gradually pick up, the Government introduced the need for fiscal stimulus will subsequently decline
B)
In order to avoid Australia in the global economy into recession under the influence of the crisis, the Australian Government has taken various measures to stimulate economic growth.
(A) take prompt expansionary monetary policy
1. A continuous sharp decline in interest rates
As of the end of August 2008, broad money growth in Australia was 14.3%, higher than the peak in January this year, 19.3% down 5 percentage points; financial institutions, credit growth was only 10.5% annual rate, compared with December last year, 16.3% lower peak 5.8 percentage points. The data reflect a serious deterioration in the macroeconomic and financial environment, corporate credit greatly reduced circumstances, the severe contraction of economic activity in the situation.
Clearly showing signs of weakness in the economy and the global financial crisis intensified on the occasion, has been strictly adhered to inflation targeting in 2008 Federal Reserve Bank of Australia in the second half was forced to adjust its monetary policy, and its change in policy is very quick. In early August cut its benchmark interest rate has not yet, but early in August into open market operations through massive amounts of liquidity, prompting once was very tight in the interbank market interest rates decreased by about 50 basis points. Subsequently, starting from the September rate cut straight, the federal cash rate to 7.5% from the highest point down to the current 5.25%. After the benchmark interest rate cut, commercial banks have reduced their mortgage interest rate of about 1%. As Australian government continued to hold the benchmark interest rate is currently high level, the Federal Reserve Bank of Australia in the future there is considerable scope to cut interest rates. Australian interest rate markets have expected before the end of 2009, or will come down to 4.5% -5%.
2. Adopt a variety of expansionary monetary policy
(1) Federal Reserve Bank of Australia and the open market by a significant increase in liquidity and increase buy-back variety, to expand the scope of repo collateral, lead and other domestic financial authorities signed and released the "memorandum of understanding on financial crisis management", and with the Federal Reserve and other central banks currency swap mechanism jointly established a variety of ways to try to ease global financial turmoil, Australian economic growth to avoid a sharp downturn. To protect the transmission of monetary policy as soon as possible to the real economy, it also joined hands with the Australian Federal Government to put pressure on the banking sector, financial institutions will be called on Australia to cut interest rates signal synchronized to the respective borrowers to pass.
(2) to the country's reputation for security, the implementation of the public bank deposit guarantee deposits for three years.
(3) improve the financial transparency from the start, to continue to strengthen its regulation of financial markets.
(B) take prompt and active fiscal policy
9 months since late 2008, the Australian Government has introduced a number of successive policies to stabilize the financial markets and maintaining economic growth.
September 26, Australian Treasurer Wayne Swan (Swan) announced that the Australian government will invest 40 billion Australian dollars, for the purchase of Australian residential mortgage-backed securities (RMBS), to ease the global financial crisis has led to Australian RMBS market liquidity dried up almost difficulties, and enhance the financing of non-bank financial institutions and credit capacity. Swan said the government will be temporarily held by the RMBS market environment improved in the secondary market after the original owners sold or redeemed.
October 2, should be the joint request of the leaders of Australian states, the Australian Government Committee (Council of Australian Governments, COAG) decided to accelerate the launch amount of 200 billion Australian dollars of the national infrastructure fund to prevent the global financial crisis impact on Australia . The fund will be used for building roads, ports and other public facilities, and private companies and the Government welcomes this cooperation.
Early October, ANZ, Westpac and National Australia Bank from the Australian government's sovereign fund - next fund (Future Fund) receive a total of 4.2 billion Australian dollars, the maximum period of 10 years in long-term financing to alleviate the financial crisis caused by the lack of liquidity difficulties in the banking sector.
Meanwhile, the Australian government decided to increase by 100 million Australian dollars of government investment expenditure, and its goal is to ordinary people as the main vulnerable groups, by increasing pension benefits, attention needs to solve for children in low-income households pay support costs and provide for first-time home buyers grants and training fees and other means to provide ways to improve people's living conditions and standards, and then as an opportunity to promote expansion of domestic demand.
(C) Other economic policy
1. Strengthen cooperation with China, India and other emerging industrial countries, trade relations, in order to avoid a sharp decline in exports.
2. To maintain a relatively liberal investment environment to attract foreign investment.
3. To restrict immigration to protect domestic jobs
4. On the part of the manufacturing sector to take special protection policy. The automobile industry as the main large-scale manufacturing is dominated by the basic characteristics of Australian industry. Therefore, maintaining the stability of the manufacturing sector is critical to avoid the economic downturn. Australian Government on its three major manufacturers to take protective measures, First, a temporary external manufacturing protective tariff; the second is to regulate corporate dividend policy, to avoid excessive loss of excessive funds, enterprise development funds needed to maintain the adequacy of from their own good way to find a solution to the shortage of funds; the third to encourage car purchases, the Government provide tax deductible purchase of a new car .
C）
During an economic boom, can inhibit further economic expansion, economic recession, can prevent the economy further into recession, so you can automatically stabilize the economy.
1. Automatically change the progressive tax system, the use of such a system, in a recession, the government collected personal income tax and auto tax corporate profits decline, individuals and companies to retain the disposable income increased, so that consumption and investment increase, resulting in total decline in demand to overcome the crisis; rise in the economic, personal and corporate income, the income tax rate levied by the Government automatically - up to enable individuals and companies restrained consumption and investment, rising prices under control, the economy stabilized. 2. Unemployment benefits and other welfare payments. In the recession, increased unemployment, the Government's expenditure on unemployment benefits and other benefits are automatically increased to maintain the spending of unemployed workers, help to overcome the overproduction; during economic upswings, unemployment by reducing the unemployment benefits and other subsidies are also automatically reduced, while the collection as a source of funding for unemployment benefits, the tax is automatically increased. 3. Private savings and corporate savings. Average family income fell in the short term, generally not reduced consumption, but to use past savings; increase in income, nor an immediate increase in consumption, but to increase savings, so consumption remained relatively stable. Companies, too, when the revenue is not easy to reduce the dividend, but to reduce retained earnings; increase in income, not easy to increase the dividend, but to increase retained profits .