Despite having a tight trading partnership with China, Australia's government should not allow it's budget to grow out of control, Reserve Bank member Roger Corbett said according to The Australian newspaper. While he may agree with the first stimulus package approved by Kevin Rudd's government, he cautioned against the side effects associated with the passage of the second one. "I think the last lot were probably misdirected to a significant degree," he said. In his comments, he also expressed his feeling that there was some need for a stimulus, saying that "there has been a kick in retail sales." These comments came just three days after the Australian government forecast a record $57 billion deficit in its next fiscal year.
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