The economic condition of a country is determined by both the factors that are out of the managing capacity of its governing body and directly implemented macroeconomic policy. The main purpose of this study is to assess and describe current economic situation of Australia and the macroeconomic strategies implemented by the government to endeavour and uphold a level of sustainable development. This study reveals that the Reserve Bank Australia’s (RBA) wants to maintain the present currency rate at 4.5%. The study also delineates the present relative steadiness of the Australian economy and present macroeconomic position as motivating. Australia has reached a verge of using fiscal policy to alleviate the macroeconomic effects of the Global Financial Crisis. Since the debt of Australia is very small in comparison to the international standard, the country could well afford to do the job. “Even after several years of sizeable fiscal deficits, the net federal debt is still less than 10 per cent of GDP” (Weber 2012, p. 3). The essential characteristic of a well-organised fiscal system is its capability to guide and direct funds from depositors to borrowers. Banks and deposit takers offer this function, allowing deposits and granting the debt into investment markets. Offering this loan to borrowers, they function typically at longer maturities. In this process of effective financial intermediation, depositors and other borrowers should have a satisfactory degree of confidence that their money is safe.
Table of Contents
1. Introduction
2. Success of the Australian Government and the Reserve Bank of Australia
3. The Current Economic Situation of Australia
3.1 External Comparison
3.2 Australia’s Economy through GDP Components
3.2.1 Expenditure
3.2.2 Net Exports
3.3 Depositor Protection in Australia
3.4 Unemployment Rate
3.5 Inflation
3.6 Small Business
4. The Main Macroeconomic Policies Used by the Australian Government
4.1 Fiscal Policy
4.2 Monetary Policy
4.2.1 Monetary Policy in Relation to the GFC
4.3 The Effect of Macroeconomic Policy
4.4 Maximum Employment
5. Conclusion
Objectives and Topics
This study aims to assess and describe the current economic situation of Australia, analyzing the effectiveness of macroeconomic strategies implemented by the government and the Reserve Bank of Australia to ensure sustainable development in the wake of the Global Financial Crisis.
- Analysis of Australia's GDP performance relative to international standards.
- Evaluation of fiscal and monetary policy interventions during economic crises.
- Examination of depositor protection and the stability of the financial system.
- Assessment of labor market trends, including unemployment and inflation rates.
- Investigation of the role of small business in the Australian economy.
Excerpt from the Book
Introduction
The economic condition of a country is determined by both the factors that are out of the managing capacity of its governing body and directly implemented macroeconomic policy. The main purpose of this study is to assess and describe current economic situation of Australia and the macroeconomic strategies implemented by the government to endeavour and uphold a level of sustainable development. This study reveals that the Reserve Bank Australia’s (RBA) wants to maintain the present currency rate at 4.5%. The study also delineates the present relative steadiness of the Australian economy and present macroeconomic position as motivating.
Australia has reached a verge of using fiscal policy to alleviate the macroeconomic effects of the Global Financial Crisis. Since the debt of Australia is very small in comparison to the international standard, the country could well afford to do the job. “Even after several years of sizeable fiscal deficits, the net federal debt is still less than 10 per cent of GDP” (Weber 2012, p. 3). The essential characteristic of a well-organised fiscal system is its capability to guide and direct funds from depositors to borrowers. Banks and deposit takers offer this function, allowing deposits and granting the debt into investment markets. Offering this loan to borrowers, they function typically at longer maturities. In this process of effective financial intermediation, depositors and other borrowers should have a satisfactory degree of confidence that their money is safe.
Summary of Chapters
1. Introduction: Outlines the purpose of the study, which is to analyze Australia's economic conditions and the government's macroeconomic response to global challenges.
2. Success of the Australian Government and the Reserve Bank of Australia: Discusses the overall positive trajectory and resilient stance of the Australian economy despite global financial turbulence.
3. The Current Economic Situation of Australia: Provides a detailed analysis of GDP, external trade performance, financial sector regulations, labor market dynamics, and the small business sector.
4. The Main Macroeconomic Policies Used by the Australian Government: Explores the specific fiscal and monetary policy tools employed to manage demand and stabilize the economy during the GFC.
5. Conclusion: Summarizes the key findings, emphasizing that sound policy management has positioned Australia favorably for future economic growth.
Keywords
Australia, Economy, GDP, Macroeconomic Policy, Global Financial Crisis, Fiscal Policy, Monetary Policy, Reserve Bank of Australia, Employment, Inflation, Small Business, Depositor Protection, Financial Stability, Sustainability, Trade Surplus.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on evaluating the economic condition of Australia over the last two years, specifically examining how government policies helped the country navigate the Global Financial Crisis.
What are the central themes discussed in the document?
The core themes include the effectiveness of fiscal and monetary strategies, GDP growth components, labor market conditions, and the robustness of the Australian financial regulatory system.
What is the main objective of the study?
The primary objective is to assess the current economic situation of Australia and describe the strategies implemented by the government to uphold sustainable economic development.
Which scientific methods or analytical approaches are used?
The study employs a descriptive and analytical approach, utilizing macroeconomic data, government reports, and institutional statements to evaluate the impact of policy decisions on national economic indicators.
What is covered in the main body of the work?
The main body covers the analysis of GDP components, external comparisons, the role of the Reserve Bank of Australia, fiscal and monetary policies, and detailed performance metrics regarding unemployment and inflation.
Which keywords best characterize this work?
Key terms include Australia, Macroeconomic Policy, GDP, Fiscal Policy, Monetary Policy, and Global Financial Crisis.
How did the Australian government protect depositors during the financial crisis?
The government introduced the Financial Claims Scheme (FCS) in 2008, providing guarantees on deposits to ensure confidence in the financial system and protect depositors in the event of an ADI failure.
How does Australia compare to other OECD countries in terms of economic performance during the crisis?
Australia successfully avoided a technical depression, achieving positive GDP growth while many other OECD nations experienced a significant economic downturn.
- Arbeit zitieren
- John Mutunga (Autor:in), 2012, Developing and understanding of Australia's economy over the last two years, München, GRIN Verlag, https://www.grin.com/document/269375
