Review the relative importance of the floating exchange rate and fiscal policy on the Australian Economy in the past twenty-(20) years. Introduction The Australian economy is one of the most stable globally and the floating exchange rate has played an important role in maintaining that stability. This essay seeks to assess the relative importance of the floating exchange rate and fiscal policy on the Australian economy over the past fifteen-(15) years. In order to do so‚ it looks at the history
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experienced non-inflationary growth at an average rate of 3.5% and has not experienced an economic downturn since 1990/91. This success is largely due to the significant microeconomic reforms in the 1980’s as well as the resources boom and high levels of consumer confidence have left the Australian economy in a strong position. Levels of economic following the prolonged period of growth in 2007/08 were at 3.8%‚ levels of growth‚ this fell to 1.6% during the 2008/09 financial year as a result of the Global
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“The general lesson is that true independence is our ability to find the truth for ourselves and has nothing to do with our tendency to distance ourselves from others.” ( Antonia Macaro & Julian Baggini‚ 2011) Independence is the state or quality of being independent‚ also freedom from control‚ influence‚ support‚ aid or the like of others. (Dictionary.com‚ 2012) There are few virtues more important than independence. Independence is a requirement for leading your own life‚ having your own rules
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Appreciating Australian Dollar Essay Discuss the impacts on the Australian economy of a sustained appreciation of the $A The Australian economy can fluctuate due to many factors‚ but exchange rates in particular can have great influences on the economy. Over the last two decades the dollar has been appreciating at a sustainable rate‚ because demand of the $A is increasing and supply of $A is decreasing‚ which has seen such effects as a worsening of the CAD‚ reduction in GDP along with a few
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responsibilities? Reserve bank of Australia (RBA) is the main body or organization to run an Australian Economy. It helps to make sustainability in a country. The main responsibilities of the RBA are explained below: 1. To improve or to stay constant Australian currency. 2. To avoid or tackle unemployment in a nation 3. To work for welfare of a nation. 4. RBA needs to be contact with government at all time to make or implements new policy in a country. 5. RBA is responsible for monetary policy in Australia
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HISTORICAL LINKS Previously‚ Australia has had many links with Indonesia which have helped to build our economy and to strengthen the ties between our nation and Indonesia. These links are through defence‚ aid and migration. The links through defence include the development of a counter-terrorism security cooperation after the Bali bombings in 2002. This was further made a priority in 2014‚ when the threat of ISIS was a concern for both nations. Aid efforts that began in the 1950s include the AIDCO
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The Impact of Globalisation on the Australian Economy Globalisation is not new. Australia has been involved in trade‚ investment‚ financial flows‚ technology transfers and the migration of labour since its foundation as a colony. What has changed is the size‚ direction and influence of these transfers‚ especially since 1980. There are a number of factors that have aided this transformation. They include: The expansion of new markets foreign exchange and capital markets are linked globally
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The Reserve Bank of Australia is a central bank‚ who in comparison to other banks have other roles. The role of the central bank or RBA is to set out objectives such as influencing the supply and demand of money through cash rates‚ making sure that the inflation rate is set at the desired 3-5% where the interest rates would be determined. The some functions of the RBA include: 1. Controlling the amount of money being produced and distributed 2. Conducting monetary policies 3. Banker to commercial
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Monetary Policy Monetary policy is a macroeconomic policy implemented by the RBA to attain a set of objectives through the basis of a stable and maintained inflation band of 2-3%. Indirectly by the implementation of monetary policy‚ supply of money is affected through changes in the interest rate; cost of living is methodically altered to suit chosen economic conditions and economic growth is steadied and sometimes purposely stagnated. There are two different directions for monetary policy
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America: the home of the brave‚ the land of the free. Yet‚ without the Declaration of Independence and the undying motivation of the newfound American army‚ that so-called land would not exist. The year 1776 makes America what is today‚ free; making it an imperative year in American history. Signing the Declaration of Independence‚ on July 4th 1776‚ separates America and England to this day and is an immense step for the new country. The bravery of the colonists by “renouncing their allegiance
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