Economic policies and management (1 Viewer)

[Valupatitta]

can some1 pls answer the following questions pls? thx!

1. What was the state of the Australian economy prior to the global financial crisis?
2. What impact has the global economy had on the Australian economy?
3. What has been happening to monetary and fiscal policy in Australia over recent years?
4. Evaluate the impact and effectiveness of monetary and fiscal policy on Australian economy.
5. What is the relationship between monetary and fiscal policy in achieving its economic objectives?

thx in adv!

 

[ajay12]

1)Australia has recording record booms due to demand from mineral exports to China. As I recall, the December '07 CAD figure was a record $9.7bn. Exchange rates were strong up around $US0.9X and the Howard gov't were producing 18 year consecutive budget surpluses.
2)Pretty self evident. Look at the economic cycle and you will see how the US economy affects the Australian economy. GFC led to US recession which put Australia on brink of recession.
3)Fiscal policy: As said before, consecutive budget surpluses. AFAIK, last year's budget was a record $22.7bn surplus (don't quote on figures) but previously they were solid, consecutive surpluses post-1991/92 recession.
Monetary Policy: Due to Australia's strong economic growth, the RBA had to increase interest rates to 7.25% to slow down the economy.

You can do 4&5.