Current Macroeconomic Conditions Of Australia - 969 Words

Current macroeconomic conditions in Australia Introduction It is said that the Australian economy was picking up in the March quarter in 2015, although the growth rate of the economy is still below the average over the past year. And there were some early indications that the strength of growing in the June quarter was not as strong as in the March quarter (Rba.gov.au 2015). Different kinds of macroeconomic indicators construct a picture of current macroeconomic conditions in Australia. There are a great number of macroeconomic indicators, three of the most important indicators will be focused as following, such as gross domestic product, consumer price index and labor force. Macroeconomic indicators Gross Domestic Product Firstly, GDP is a central concept in macroeconomics in Australia. â€Å"GDP is the market value of all final good and services produced in a country during a period of time.† (Hubbard et al. 2015). GDP includes consumption, investment, government purchases and net exports. And it is a measurement of a nation’s overall economic activity. The gross domestic product is usually used to measure the economic health of a country, and also the country’s standard of living (Investopedia 2015). Referring to the table below which is the data set gathered from the ABS, there are both increase in trend term and seasonally adjusted term from March quarter to June quarter in 2015. A rise in GDP indicates that there is an additional value in the economic market. It can alsoShow MoreRelatedThe Reserve Bank Of Australia ( Rba ) Introduced A New Monetary Policy786 Words   |  4 PagesOn May 3rd 2016 the Reserve Bank of Australia (RBA) introduced a new monetary policy. This policy resulted to the conclusion reached by the Reserve Bank of Australia to cut the official interest rates from 2% to 1.75% (decrease of 0.25%). This is due to the country displaying that inflationary pressures are lower than that estimated for the period. There are numerous cuts in interest rates around Australia and the Australian general economic conditions throughout 2015 and through to 2016. What areRead MoreThe Reserve Bank Of Australia Essay1345 Words   |  6 PagesOn May 3rd, 2016 the Reserve Bank of Australia (RBA) made a new decision based on the monetary policy. This decision reached by the Reserve Bank of Australia was to cut the official interest rates from 2% to 1.75% (decrease of 0.25%). This is due to the country displaying that inflationary pressures are lower than that estimated for the period. There are numerous cuts in interest rates around Australia and the Australian general economic conditions throughout 2015 and through to 2016. What are theRead MoreIncrease Household Debt Levels At Australia1002 Words   |  5 Pagesdisposable income earned by households in that year, (ABS 2014). This significant rise in debt taken on by Australian households can be attributed to favourable macroeconomic conditions and historically low rates of interest and inflation, (Meng, Hoang Siriwardana 2013). Favourable macroeconomic conditions: Prior to the Global Financial Crisis Australia experienced strong economic growth, low levels of unemployment and strong growth in both the housing and share market. This was due to the mining boom andRead MoreUnemployment And Its Effects On The Economy1452 Words   |  6 PagesEconomic growth is an ongoing process of increase in the production capacity of goods and services over a period of time. This determines economic wealth and individual living standards. These two economic issues have been a continuous matter within Australia, however the government has been actively addressing it with several policies which are varying in effectiveness. Unemployment has been one of the most persistent of all economic issues, leading to rising debates from economists over the causesRead MoreEssay about Fluctuations in External Stability1634 Words   |  7 Pagesrelationships with other economies do not hinder achieving domestic economic policy goals such as lower rate of unemployment, higher rate of growth and lower inflation. There are three main factors that effect external stability the deficit on the current account (CAD), net foreign liabilities and the Australian dollar. Australia’s experienced times when overseas investors decided that the economy’s external position was unstable, and when investors like such decide to withdraw their investment fromRead MoreDiscuss The Best Option For Australia And Will Justify The Rationale1706 Words   |  7 Pagesinflation and implementing policies for sustained economic growth. This paper will present a discussion on the definitions of each policy while examining their role in economy. Based on the obtained insights, the paper will discuss the best option for Australia and will justify the rationale. In the end, the discussion will be given a conclusive shape in which the key learning will be summarized and future context of policy implementations will be included. Definitions of Monetary Policy As a part ofRead MoreThe Current Monetary And Fiscal Policy Essay955 Words   |  4 Pages Keynes would be adamant of government intervention and new policy reforms which seek to address market distortions created by the government’s stance on the current monetary and fiscal policy. The principle of Keynesian economics is that in the event investment exceed savings inflation would result. Similar principle could be applied to the housing market where investment properties are finance by large mortgages with only a fraction of the cost funded by savings. To combat investor demand interestRead MoreFundamental And Economical Swot Of Commonwealth And Nab Bank Essay1855 Words   |  8 PagesExecutive summary This is an economic strategic record, which is divided into three components. Section A describes and introduced Commonwealth Bank and Nab Bank concerning the mission, current price methods and the market definition of the Commonwealth Bank and Nab Bank. These banks are the top four biggest banks in Australia, which is delivering monetary offerings. To be trained identifies countless strategic variables, which greatly influence the efficiency and the profitability of the bank. SectionRead MoreIb Economic Hl Commentary799 Words   |  4 Pagesof inflation in Japan is 0.25%. However, the inflation rate of Japan is only two to three percent annually. It could be categorized as low compared with the other developed country such as Australia. In addition, Japan faced a problem of sluggish in consumer spending. This is cause by demographic condition in Japan (line 27). To increase an inflation rate, the government has to find a way to increase the level of aggregate demand for local product, It could be done by applying demand-pull inflationRead MoreBiography of John Maynard Keynes Essay990 Words   |  4 Pageseconomic studies into today’s world. Keynesian economics is described â€Å"as a sort of yardstick that can define virtually all economists who came after him†. (Keynes, 2008) In this study of John Maynard Keynes, we will be able to see how he contributed to current management practices and more specifically how he had a hand in influencing the field of economics. With this exploration of John Maynard Keynes, we will see how he influenced the world of economics and how he helped to develop the economy in one