We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Australia's Economy Over The Last Two Years - Essay Example

Comments (0)
Summary
Australia's Economy Over The Last Two Years.
Macroeconomic policies include different rules and regulations, which the government of a country sets with the sole intention of having control over the economy (Economic Times 2013)…
Download full paper
GRAB THE BEST PAPER
Australias Economy Over The Last Two Years
Read TextPreview

Extract of sample
Australia's Economy Over The Last Two Years

Download file to see previous pages... In Australia, the Australian government and the Reserve Bank of Australia play a major role in the country’s economics, as these determine the macroeconomic policies in the country. According to the International Labour Organization (2013), a microeconomic policy that is aimed at achieving economic stability in a country, is a paramount condition for the achievement and sustenance of high levels of development tin a country. Nonetheless, this part of the essay explores the main macroeconomic policies used by the Australian Government and the Reserve Bank of Australia over the last two years. There are two core macroeconomic policies, which a country can use, and these include the monetary and the fiscal policy. Nonetheless, the Australian government and the Reserve Bank of Australia have in the past two years, used these to control the economy. Fiscal policy in Australia includes the level and composition of government revenues and outlays, methods of financing a budget deficit or using a budget surplus, the operation of automatic and discretionary stabilizers, and the provision of incentives to increase aggregate supply. According to Parkinson (2012), a major function of Australia’s fiscal policy is to ensure the maintenance of fiscal sustainability from a medium-term perspective. Parkinson (2012) also notes that monetary policy in Australia has the main purpose of maintaining inflation between 2 and 3 percent. The monetary policy in Australia has to do with the Reserve Bank of Australia interest rate, as well as the exchange rate policies, and transmission mechanisms. This serves to anchor inflation expectations, and has the responsibility of managing demand. This is with the aim of ensuring that the country’s economy remains on a stable path of growth, and maintains a low rate of inflation. Therefore, monetary policy and fiscal policy, as well as exchange rate, are three core aspects of Australia’s macroeconomic framework, which have been extremely important for the past two years, as these have provided a great level of flexibility for the country to deal with economic shocks that it experiences from time to time. Parkinson (2012) notes that the Australian macroeconomic policy framework is an asset and an endowment to the country, as it forms a core part of the country’s productive base. Nonetheless, for the past two years, these have been effective in ensuring that Australia addresses its economic problems, and the Australian government achieves its economic objectives. The Reserve Bank of Australia deals with all the issues pertaining the monetary policy. Nonetheless, a major aspect of the monetary policy, which the Reserve Bank of Australia utilizes is the interest rate. This interest rate influences differently other interest rates in the economy, so that the borrowers and lenders in the money markets come under the influence of the monetary policy. The Reserve Bank of Australia controls the interest rates in a manner that will ensure that the objectives of the Reserve Bank Act 1959 are attained. These include, and are not limited to ensuring a stable currency of the country, preventing unemployment, boosting living standards of citizens, and ensuring economic empowerment of the people (Reserve Bank of Australia 2013). In order to ease or loosen bonds, the Reserve Bank of Australia would buy bonds in order to create excess liquidity, putting downward pressure on interest rates, allowing increased consumer and investment spending, and finally lower the rate of unemployment. Similarly, when there is a possibility of the rate of inflation to increase, the Reserve Bank ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
American economy over the last two years (2009-2010)
The volatility of the American economy financial market was increasingly becoming risk prone with evidence of losses being experienced in investments made. In addition, the financial and capital markets were reacting to global economic recession as stock prices continually went down.
8 Pages(2000 words)Essay
Australian Economy over the Last Two Years
You need to review the report carefully. Ask yourself: * Where there is matching material, is there a sufficient amount to indicate that the Writer has taken the material from a source, or is it just a fragment? * If the Writer has taken material from a source, have they properly referenced it?
8 Pages(2000 words)Essay
Australian Economy over the last two years
When one views at the annals of world history, it has been clearly validated that for a nation to elevate itself to the top echelons, it has to have an optimal, strong and ever growing economy. If a country’s economy faces obstacles, and goes into a recession due to various factors in its macro as well as micro environment, it will lead to a lot of problems for the country’s functioning, its business and it citizens.
8 Pages(2000 words)Essay
How successful have the Irish Government and the European Central Bank been in running the Irish economy over the last two years
Ireland’s implementation of the corrective program continues to be strong and has yielded fruitful results. Thus in sum, it can be said that the Irish Government has been successful in repairing its economy and returning it to the economically viable state it was in before the financial crisis hit it in 2008.
3 Pages(750 words)Essay
Workplace Change Over the Last 1015 Years
As such, many organizations have witnessed a lot of differentiation, formalization, coordination and shifts in the centralization of power (Mesut 2005). The rapid change in technology is fast being felt in the workplace. According to a recent survey carried out in the UK on some business executives, 61 percent of those interviewed concurred that technology does indeed enable new working styles.
7 Pages(1750 words)Essay
Australian Macro-Economy
Macro-management, of itself, is not the key ingredient in the process; rather, the essential building blocks have been trade liberalization, the opening of the capital account, the floating of the dollar, and the attempts at broad-ranging micro-economic reform, as yet incomplete.
7 Pages(1750 words)Essay
Economics - to develop an understanding of what has happened in the economy of the United Kingdom over the last two years
The economy of United Kingdom has seen the slowest growth during the past three years and a few analysts are of the view that the interest rates will fall very soon. The reports from the office for national statistics have
8 Pages(2000 words)Essay
Economics - to develop an understanding of what has happened in the economy of the United Kingdom over the last two years
United Kingdom stands on the sixth position on the basis of the purchasing power and the fifth in terms of the exchange rates. The different parts of the economy will be discussed in detail in the following sections. The Gross Domestic
8 Pages(2000 words)Essay
What has happened to the canadian economy over the last two years
How has the Canadian economy weathered the economic storm during this period of global economic contraction? What can the world learn from the Canadian economic model and has it
6 Pages(1500 words)Essay
What has happened in Great Britains economy over the last two years
As part of the main discussion, this report will describe and evaluate the main macroeconomic policies used by both the British Government and the Bank of England. Furthermore, real-life economic situations that
8 Pages(2000 words)Essay
Let us find you another Essay on topic Australia's Economy Over The Last Two Years for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us