Economic policy.

The article deals with the economic policy in Australia. The Labor government is reviewing the Carbon Pollution Reduction Scheme which it plans to implement in 2010 as part of its commitment to carbon emissions reduction under the Kyoto Protocol agreement. The government is also negotiating free-trade deals with Chile which is expected to be signed in the second half of 2008. The impact on the country's financial conditions of the increases in the overnight cash rate, increases in market interest rates and tighter credit policy is also discussed.