On 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 are
Executive 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. Section
through conducting effective monetary policy. The following paper will assume the perspective of the Reserve Bank of Australia (RBA) and critically analyze the past, present, and future of the Australian economy while considering specific sectors. With a GDP of over $1 trillion USD, the Australian economy is among the largest in the world (Cornett and Saunders, 2014). Australia is trading partners with the United States, China, and Japan, but their economic ties are mainly centered in the Pacific
disposable 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 and
strength. In economics, GDP is an important index of a country 's economic health. It is important because each component of GDP will represent in daily life. In Australia, GDP growth dependent on its service sector, manufacturing and agriculture, in which the service sector accounted for the highest proportion of total GDP. Moreover, Australia is a country which has rich resources, and this become another economic growth point that different from other countries.
curve: 4 SRPC- Short Run Phillips curve: 4 Real Life example of Unemployment in Australia 5 Section 2: Simple model of AD and AS 6 Aggregate demand and Aggregate supply: 6 What is AD or aggregate demand? 6 Consumption Expenditure: 6 Investment Demand: 7 Government Expenditure: 7 Net Exports: 7 Aggregate demand: 7 What is Aggregate Supply? 8 Macroeconomic equilibrium: 9 Output Gap in different countries: 10 The Macroeconomic Equilibrium at different scopes of AS: 13 Section 3: Monetary Policy Changes
Economic 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 causes
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
became part of our daily lives (Read page 180 of your text). Using the airline industry in Australia, list some of the factors that are driving an increase in competition between firms in this industry? Bearing in mind these factors, what sort of a market structure closely resembles the environment in which the firms in the airline industry in Australia operate in? Explain. Answer: Introduction: Macroeconomics analyses economic issues at the highest levels of aggregation: the economy as
cars into the ultimate in personal mobility, flexibility and convenience”. (http://www.abs.gov.au/) Figure (A) shows that in the year of 1955 there were limited cars per 1000 people of the population in Australia, as opposed to 2013, which increased greatly per 1000 people of the population of Australia. This goes to show that the demand for cars had increased in that time frame, as the population had increased. The table below figure (B) shows that between 2009 and 2012, the census showed that the main