On monetary policy it is hard to be definite on this point, because other important factors were also at work – for example, the recognition that the international cycle was turning and that inflation remained low – but, at the margin, the weakness in the second half of 2000 contributed to an earlier easing.
On fiscal policy, the increase in the first home buyers’ grant is an example. Finally, the perception of weakness in the Australian economy probably contributed to holding down the value of the Australian dollar. I do not want to make too much out of these arguments, other than to point out that some clouds do have silver linings. 5.