Australian governments boost public investment after adopting fiscal policy rules.
Governments in Australia have been using rules-based fiscal policies to manage their finances better. By studying data from public documents, it was found that Australian governments mostly followed these rules, especially those related to debt, net worth, and budget balance. When governments adopted rules to maintain their net worth, they tended to increase their investments in public infrastructure. This suggests that government spending may not always be independent of other factors, like fiscal rules.