ID :
201244
Mon, 08/15/2011 - 04:11
Auther :
Shortlink :
https://oananews.org//node/201244
The shortlink copeid
Australian economy well placed: Zoellick
(AAP) - Australia is better placed to withstand another global financial crisis than other developed economies, World Bank president Robert Zoellick says.
Speaking to reporters after addressing the Asia Society in Sydney, Mr Zoellick suggested Australia could afford to deploy another stimulus package if the global downturn hit the local economy.
"In general, I think most economies are now in the position where they've used a lot of their fiscal space and monetary policy is about as loose as it can be," he said.
"Australia is in a different situation."
Mr Zoellick said economic reforms put in place since 1983, including the dismantling of tariff barriers, had helped.
"What I'll suggest is that overall, Australia is in a much better position than other developed countries in part because Australia undertook a lot of the structural reforms ... and also on the fiscal side, the debt was paid down so it's about seven per cent of GDP now," he said.
"Whatever the policy decisions, and political decisions in Australia, it's in a better position along with the fact it's continued to pursue an open trade policy and take advantage of its position in the Asia-Pacific."
Earlier, Mr Zoellick told dinner guests that financial markets had lost faith in the economic leadership of the US and Europe.
"Those events combined with some of the other fragilities in the nature of recovery have pushed us into a new danger zone and I don't say those words lightly," he said in forum with retired Australian diplomat Richard Woolcott.
"We're entering a new danger zone and I think that confidence in economic leadership has been slipping.
"We're kind of moving from drama to trauma for a lot of the eurozone countries."
Mr Zoellick, a former US trade representative, predicted that while the US dollar would remain a principle reserve currency, there would be other exchange rate benchmarks.
"We're likely to move to a system where there will be multiple reserve currencies," he said.
"What you're going to see over the course of the next five years, maybe 10 years, is maybe moving to a new system, whether consciously or unconsciously."
He predicted the Chinese renminbi could "over time" be "part of this", as the Japanese yen and the British pound played a limited role.
Asked about the strong Australian dollar by opposition frontbencher Malcolm Turnbull, Mr Zoellick said a limited amount of currency intervention may be appropriate.
"People need to have an open mind at least about asking, thinking about these questions," he said.
Former prime minister Paul Keating, former NSW premiers Bob Carr and Nick Greiner, the federal coalition's foreign affairs spokeswoman Julie Bishop and BHP Billiton chairman Jac Nasser were among the 200 people in the audience.
It is understood Mr Zoellick will meet with Acting Foreign Minister Craig Emerson in Canberra on Tuesday or Wednesday.
Speaking to reporters after addressing the Asia Society in Sydney, Mr Zoellick suggested Australia could afford to deploy another stimulus package if the global downturn hit the local economy.
"In general, I think most economies are now in the position where they've used a lot of their fiscal space and monetary policy is about as loose as it can be," he said.
"Australia is in a different situation."
Mr Zoellick said economic reforms put in place since 1983, including the dismantling of tariff barriers, had helped.
"What I'll suggest is that overall, Australia is in a much better position than other developed countries in part because Australia undertook a lot of the structural reforms ... and also on the fiscal side, the debt was paid down so it's about seven per cent of GDP now," he said.
"Whatever the policy decisions, and political decisions in Australia, it's in a better position along with the fact it's continued to pursue an open trade policy and take advantage of its position in the Asia-Pacific."
Earlier, Mr Zoellick told dinner guests that financial markets had lost faith in the economic leadership of the US and Europe.
"Those events combined with some of the other fragilities in the nature of recovery have pushed us into a new danger zone and I don't say those words lightly," he said in forum with retired Australian diplomat Richard Woolcott.
"We're entering a new danger zone and I think that confidence in economic leadership has been slipping.
"We're kind of moving from drama to trauma for a lot of the eurozone countries."
Mr Zoellick, a former US trade representative, predicted that while the US dollar would remain a principle reserve currency, there would be other exchange rate benchmarks.
"We're likely to move to a system where there will be multiple reserve currencies," he said.
"What you're going to see over the course of the next five years, maybe 10 years, is maybe moving to a new system, whether consciously or unconsciously."
He predicted the Chinese renminbi could "over time" be "part of this", as the Japanese yen and the British pound played a limited role.
Asked about the strong Australian dollar by opposition frontbencher Malcolm Turnbull, Mr Zoellick said a limited amount of currency intervention may be appropriate.
"People need to have an open mind at least about asking, thinking about these questions," he said.
Former prime minister Paul Keating, former NSW premiers Bob Carr and Nick Greiner, the federal coalition's foreign affairs spokeswoman Julie Bishop and BHP Billiton chairman Jac Nasser were among the 200 people in the audience.
It is understood Mr Zoellick will meet with Acting Foreign Minister Craig Emerson in Canberra on Tuesday or Wednesday.
