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Why Brexit and the spectre of President Trump aren't hurting Australia's economy

  • Written by Efrem Castelnuovo, Principal Research Fellow, Melbourne Institute of Applied Economic and Social Research - Associate Professor, Faculty of Economics and Business, University of Melbourne
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Uncertainty about future policy decisions is often identified as major drag on a country’s economy. Uncertainty about interest rate movements, for example, may see households postpone their consumption, and entrepreneurs wait and see before investing in a business. As a result, aggregate demand naturally weakens, and the economy slows down.

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