Abstract
IMF Country Report No. 23/51
Copyright Page
IMF Country Report No. 23/51
AUSTRALIA
SELECTED ISSUES
February 2023
This Selected Issues paper on Australia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on January 9, 2023.
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© 2023 International Monetary Fund
Title page
AUSTRALIA
SELECTED ISSUES
January 9, 2023
Approved By
Asia and Pacific Department
Prepared By Pragyan Deb, Siddharth Kothari (both APD), and Karlygash Zhunussova (FAD), with additional inputs from Yosuke Kido (BoJ), and with assistance from Ioana Hussiada and Nadine Dubost (both APD).
Contents
INFLATION AND WAGE DYNAMICS IN AUSTRALIA
A. Introduction
B. Inflation Developments
C. Wage Dynamics
D. Conclusion and Policy Discussion
TABLES
1. Wage Phillips Curve – Australia Compared to Peers
2. Wage Phillips Curve – Sector Level Analysis
3. Wage Phillips Curve – Unemployment Interacted with Labor Market Institutions
4. Wage Phillips Curve – Inflation Expectations Interacted with Labor Market Institutions
References
ANNEX
I. Additional Results
CLIMATE MITIGATION POLICIES IN AUSTRALIA
A. Introduction
B. Recent Trends in Green House Gas (GHG) Emissions
C. Australia’s Emissions Target under the Paris Agreement
D. Policies to Reduce Emissions: The Role of a Carbon Price
E. Power Sector
F. Industrial Emissions and the Safeguard Mechanism
G. Transport Sector
H. Other Sectors
I. Conclusion
FIGURE
1. Impact of a Carbon Tax on Emissions and Economic Activity
References