The Financial Crisis Of Australian Bonds

Commonwealth Government, Budget Paper No 3: Australia’s Federal Relations, 2009-10, 12 May 2009, p 7.

First of all, from 2008 to 2015, property prices of all capital cities in Australia have increased rapidly. People have had obsession with buying houses. At the same time,

Achieving external stability is an important objective of economic policy, achieving this stability ensures that imbalances in Australia’s economic relationships 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

(Kryger, 2014) Therefore loans and importing goods is a popular way to accumulate enough to start or grow a business or investment. When you look at our national saving as a proportion of gross domestic product there is a slight decline, whereas investment has stayed pretty much the same with an even slighter decline. This graph also indicates that during the late 70s and the early 80s people began to save less than what they were investing meaning there has been an increase in borrowings. This graphs also shows that with this decrease in savings and steady investment Australia’s current account deficit has been growing. With decreasing savings Australia’s investments must perform well enough to ensure we'll have the earnings to cover the servicing of the additional debt we're acquiring. Despite the growing current account deficit and the decreasing savings this graph also indicates we aren’t just importing for consumption we are importing for investment. In an attempt to increase savings to secure a reasonable standard of living in retirement for all Australian’s superannuation had become complusory, however these savings are difficult to use for investment purposes. If governments seek to reduce or foreign borrowings they could use Australian’s super as funds instead of

Australia’s traditional reliance on ‘’great and powerful friends’’ thus became outmoded, leading the Whitlam government to develop an independent Australian foreign policy premised on an increased economic and diplomatic engagement with Asia and defence through self-reliance that continued under Hawke-Keating. Australia’s economic development under Hawke-Keating began with the reduction of tariffs and removal of restrictions preventing foreign banks from operating in Australia, signaling the government’s desire to further distance itself from the protectionism and reliance on trade with the United Kingdom and Europe that had dominated Australia’s trade patterns prior to Whitlam. However, the Hawke-Keating government’s willingness to commit troops to the Gulf War illustrated a desire to retain strong ties with the US. An increased focus on regional trade began with the Closer Economic Relations trade agreement with New Zealand eliminating all trade quotas and tariffs between the two countries and continued with the promotion of economic cooperation with Indonesia through the Timor Gap treaty. On a multilateral scale, the Australia-led formation of the Cairns group in 1986 further reflected a governmental impulse towards trade liberalization and Australia’s economic engagement within the Asia-Pacific. However, the Hawke-Keating government’s

Discuss costs and benefits of government intervention to correct market failure in the Australian economy.

Australian foreign policy has undoubtedly been subject to vast changes over the past century, particularly as a response to the increasing role Asia has played in shaping the contemporary global market. Having identified the importance of multilateralism and regionalism, policy continue to be increasingly focused on our geographical position as part of the Asia-Pacific region, and the relationships with our immediate neighbours, as a means to better achieve stability. The word stability in this context does not simply refer one single aspect, but rather encompasses several different areas which are equally important if we are to continue advancing our country in both a domestic and international sense. There are several key areas of policy

The Australian superannuation industry has also been reported to have increased in growth ever since the year of 2009, up to 2015 the growth exceeds the annual gross domestic product. The trends seen in recent year indicates that by lowering the cost, members benefit from greater values, which leads to a lower fee being passed onto its members. The main objective of the Australian superannuation industry is to come up with solutions that mainly focus the needs of a retired individual. However, this objective is restricted as the industry is meeting the demands of individual with limited capacity (KPMG,2015). Members of Australian Super have access to 14 different investment options that can be split into two categories either, members can either invest in a diversified fund or focus their investments on a single Sector(RateCity, 2016). Premixed options are diversified options that allow members to invest in a variety of asset classes such as shares, property, infrastructure, fixed interest and cash. While DIY Mix options are single asset class portfolios. Members are granted the ability to choose how much they want to invest in each in a mix that can also include one or more PreMixed options, this option gives its members more control over their allocation (INVESTMENT CHOICE GUIDE, 2016)

Australia has been expanding the economies and becoming the wealthiest nations in the Asia-Pacific regions. The old Labor government use a fiscal policy by increasing the government spending in the Global Recession in 2009. Australia generates the mainly sources of exporting form mining and agriculture, and its services, technologies, and high-value-added manufactured goods are competitive international standard. Australia draws attention to foreign investment with foreign competition and a skillful workforce in almost all industries. The government involves less in the most area of the market and the competition in financial services has increased. Government debt is increasing because of the global financial crisis but it is lower than the

Australian involvement in the G20 Financial Stability Board discussions on carbon risk impacts for financial stability

rent changes of the money related framework gave it more noteworthy ability to meet the financing needs of the economy and made Australia more appealing to remote speculators.

Australia imports generously a larger number of merchandise and administrations from the USA than it fares to it. As shown in source B1, exports to the US are 15,533 million AUD, compared to the 39,181 million AUD that is imported from America. Australia’s exchange deficiency with the USA has enhanced marginally since 1998, from a top of $14.2b in that year, to $12.5b in 2003. It was at its most minimal in 2011 at $10.7b, when the $A conversion standard was least against the $US. Somewhere around 2010 and 2012 Australia 's fares to the USA were worth over $16.2b every year, except they tumbled to $14.2b in 2013. The USA got 10% of Australia 's aggregate fares in 2013, down from 12% in 2010. The USA 's relative significance to Australia as a

In more recent times, Australia has seen two major waves of financial reform. The first wave, in the1970s and 1980s, involved a major deregulation exercise which transformed

As the current interest rate set by the Reserve bank of Australia is 1.5% the likelihood of saving will decrease and instead consumption from investments is more likely to increase. This will also leave homeowners with more disposable income as the cash rate also decreases their mortgage rate also decreases

The issues for people to access to financial advice cause Australian Government decide to change in regulations. The recent FOFA reforms focus on improving the quality of financial advice and lessen the risk of customers paying ongoing fees unknowingly for services they are not getting (Koremans, S, 2011).