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Abstract: This book is an annual commentary on significant developments in the economy over the past year. Major macro-economic problems are addressed and the progress of the micro reform agenda is assessed; the traditional policy weapons of fiscal and monetary policy are analysed and the latest Federal Government budget strategy is reviewed. In an economy where the one constant is the rate of change, the need is for an up-to-date assessment of economic issues and events, clearly explained and with real-world relevance. 'The Australian Economy: A Student's Guide to Current Economic Conditions' provides that kind of assessment. Major economic events are covered in a meaningful way with simple explanations, supported by key facts. The articles are written by experienced economists and educators with the needs of secondary students in mind. The currency and relevance of The Australian Economy make it ideal companion to the basic student texts. As a guide to understanding and retention, each article is accompanied by a series of question/discussion points. 'The Australian Economy' brings together in a concise and easy to understand manner the recent problems of the economy and the policy responses of the Government.