After falling sharply in 2011, these rates recovered to around average levels in both Sydney and Melbourne in late 2012 and they appear to have increased further early this year.
Traditionally, economists distinguish between - at least - two instruments of economic policy-making: fiscal and monetary policy-making. As far as fiscal policy is concerned, three main functions can be distinguished. First, the allocation function or the provision of public goods. Second, the redistribution function, or the adjustment of income and wealth to what society considers a ‘fair’ distribution.