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Executive Summary
The purpose of this report was to evaluate the performance of the Australian economy over the last five years (2003-2008). To critique the performance of the economy, the five economic objectives of the Australia economy were used as criteria in judging its performance. The five economic objectives are:
• Economic growth
• Full Employment
• Price Stability
• External Balance
• Standards of Living

Australia’s position in the trade cycle was also examined. After extensive analysis of the criteria, this report concluded that Australia’s biggest problems lie in price stability (inflation) and external balance (current account deficit). Some of the recommendations this report made were:
• This report recommends that interest rates should remain constant. This is because cost-push inflationary pressures are now evident and raising interest rates will only add to inflationary pressure.
• The Australian dollar needs to be kept relatively low, so exports can be further stimulated. This will also reduce imports, which will reduce Australia’s current account deficient (CAD).
• Rebates should be offered for research in alternative fuels. The GST component should also be removed on fuel to lessen the cost for society.



























1.0 Introduction
This report will evaluate the performance of the Australian economy over the last five years (2003-2008). The five economic objectives will be used as criteria in critiquing the performance of the Australian economy. Therefore, after evaluating the performance of the economy, recommendations will be made regarding future priorities and economic policy directions.

2.0 Research Methodology
This report was...