microeconomic reforms (1 Viewer)

[tradewind]

what exactly is microeconomic reform?

My understanding of microeconomic reforms is that it leads to structural change and therefore could lead to higher productivity and therefore help firms compete on an international scale.

I don't think my understanding is adequate enough and if someone could give me examples of microeconomic reforms and how has it impacted on the Australian economy?.
It would be most helpful.

 

[i-color]

Microeconomic reforms are structural changes to specific sectors of the economy to raise dynamic, technical and allocative efficiency.

Basically it aims to resolve the structural problems within our economy that allows it to achieve higher rate of eco growth without threatening inflation etc. ie, allowing all economic objectives to be achieved at the same time. Also micro reform aims to make economy more internationally competitive so it is more efficient on the global market etc.....

You would actually learn micro reform in topic 4 in detail. Main ones include trade policies, industry policies, labour market reforms etc. One example would be intro of enterprise barganiing allows wage growth to be more in line with productivity growth, which means it keep cost push inflation in line.

 

[santaslayer]

Microeconomic Reforms aim to change the SUPPLY side of the economy whilst Macroeconomic reforms target the DEMAND.

 

[overwhelming]

umm but microeconomic reform also effectively influences the Demand for our G & S due to changes in international competitiveness or structural changes.

 

[m*ilki]

I thought structural changes refer to the changing growth rates experienced within and between diff industries in order to make them more productive, efficient and competitive. This is a RESULT of variations in demand. It only affects the demand insofar as it changes the supply of goods?

ALSO:

I was wondering what more recent (2003-2004) examples of micro economic reform were, as all that I have found are those accomplished in the 1990's.

 

[i-color]

Well all the stuff about medicare reform and stuff last year (even though it had not been passed) and the stuff about changes to fees in unis etc are all examples of microeconomics reform.

Basically the govt is trying to let market forces play a bigger role in the economy in certain sectors such as that of education and health etc. They're adopting this 'user-pays' approach instead of having the govt intervening in the market and interfering with the equilibrium prices.