Question #38
It is inevitable that public debt will rise in Australia under current circumstances given
- that the federal government does not want to increase the overall tax take given the depth of the spending gap it is trying to fill.
- that the federal government has voluntarily imposed a rule that it will match all net spending fully with market-based debt issues.
- that the federal government knows that it would create hyperinflation if it didn't drain the funds.
Answer #375
Answer: that the federal government has voluntarily imposed a rule that it will match all net spending fully with market-based debt issues.
Explanation
Please read Federal budget 2009 - ignorance will drive bad policy or post a comment for further discussion