The purpose of this article is to assess the macro-fiscal flows for Australia and determine what effect these flows will have on the stock market and the economy.
Three macro flows influence the markets and economy, and these are national government spending, the current account, and bank credit creation. This information is shown graphically in the charts below.
The chart below shows the national budget information to the present day over ten years tracked alongside the stock market. Cash injections are shown counter-intuitively as a minus. The chart is shown in terms of whether the