Swan tightens the screws

Government spending will fall by a record 4.4% in 2012-13, and the market could fall further once investors realise just how tight the fiscal settings are. Already a .25% rate cut is being priced in.

Today’s Mid Year Economic and Fiscal Outlook shows how fiscal policy has been an important shock absorber for the economy over the most recent business cycle. In other words, the government is delivering classic counter-cyclical fiscal policy settings.

It should reinfoirce the coveted triple-A credit rating from all three ratings agencies.

Here is the context.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles