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The report has even argued that the government should enhance capital expenditures "in order to counter-balance the contractionary effects of fiscal consolidation."
The shift in fiscal stance should have imparted a contractionary bias to the economy, yet over the last four years the economy has prospered.
Macfarlane sounded an alarm, warning that the global slump would have a "significant contractionary effect" on the Australian economy.
Government surpluses drain the private sector of net savings, a very contractionary policy!
If you believe in stimulus, all stimulus plans are eventually contractionary .
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