The Fiscal Monetary Policy Of Australia

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The post-GFC expansionary monetary policy of Australia
Background
The global financial crisis (GFC) is begun with the collapse of Lehman Brothers in Sep. 2008, when a loss of confidence in stock investors of the value of sub-prime mortgages caused a liquidity crisis, resulting the global central banks injecting a large amount of capital into the financial markets and consumers ' confidence hit the bottom, according to McKibbin, W.J. (2009, p.1).
The second phase of GFC stepped after the US bank crisis has evolved into the euro crisis, which thought to be the will of US leading troubles. Europe had its own internal unbalances that proved just as significant as those in US. Southern Europe racked up huge current-account deficits in the first decade while countries in the north ran offsetting surpluses. The imbalances were financed by credit flows from the euro-zone core to the overheated real estate markets of countries like PIIGS (Portugal, Ireland, Italy, Greece and Spain). The euro crisis is also a continuation of financial crisis by other means, as market ignoring the weaknesses of government debts overwhelmed its GDP.
The result is that the GFC has seen the largest and sharpest drop in global economic activity nowadays. In 2009, the most major developed economies are in a deep recession. The fallout for global trade, both for volumes and types were dramatic. The OECD predicts world trade volumes will shrink by 13 percent from 2008 to 2009. Governments have responded with
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