I have always thought that a GST is a good thing for the economy, principally because it could take some of the weight off the high marginal tax rates on middle incomes in Australia. I still do support it and note that it will still form an important part of the Australian tax system beyond the next election.
My only point is that when making a major reform, such as a tax reform, the transition effects associated with implementing such a large change are nearly always unpredictable and cause short-term dislocation. But that is not a reason not to do them, otherwise we would never get any reform. Monetary policy I will now turn to monetary policy.