What's it all about? What does good economic management mean in Australia

This paper considers the question of what is meant by good economic management. In addressing this question it considers both the long term perspective and the international perspective. Australia's post GFC experience is contrasted favourably with a broad range of other countries, especially countries that cut government spending as their economies slowed. As Figure 1 shows Australia's economic performance as measured by GDP has been superior to the rest of the developed world, especially when compared to countries that pursued cuts in government spending as their economies slowed. The paper also considers the long term economic management of the major parties through the prism of the broad economic theories to which they have subscribed over time. It argues that, with occasional deviations, Labor’s macroeconomic policy stance has been Keynesian ever since the Working Nation package introduced in the aftermath of the 1990-91 recession