The Reserve Bank Of Australia

Australia’s economic status can be assessed using a range of economic indicators such as unemployment rates, Gross Domestic Product (GDP), inflation rates and interest rates. The economy can affect Australian business’s greatly causing them to flow through the business cycle. The business cycle purpose is to describe the overall trends of the economy and can show growths of high or negative. The four stages in a business cycle are: expansion, this is when the economy has high demands; peak, this is the turning point of the expansions before the economy falls down. A contraction is when the demand for goods and services are low; and trough, is the opposite of a peak. To evaluate Australia’s current economic status factors such as unemployment

With the consistent increase of property prices and more personal debt than ever before, we assume that there’s a housing bubble in Australia. The statistics show that from 2008 till now, property prices have been going up as a result of increased mortgage debt. When it slows down, that could cause a property crash. We are sure that there’s a housing bubble, but we cannot confirm when it will finally burst although a few area in Australia has already met a decrease of house prices. There are 3 indicators of the housing bubble in Australia.

The world price of Australia 's mining exports has more than tripled over the previous decade, while investment spending by the mining segment expanded from 2% of GDP to 8%. This mining speaks to one of the biggest shocks to hit the Australian economy in generation. This paper endeavours to evaluate some of Australian economics’ effects to the mining industry, utilizing top-down analysis of the Australian economy. It will demonstrate the mining has significantly expanded Australian living standards.

The world price of Australia’s mining exports has more than tripled over the past decade, while investment spending by the mining sector increased from 2 per cent of GDP to 8 per cent. This ‘mining boom’ represents one of the largest shocks to hit the Australian economy in generations. This paper attempts to quantify some of its effects, using top-down analysis of the Australian economy. It will show the mining boom has substantially increased Australian living standards. By 2016, we estimate that it had raised real per capita household disposable income by 13 per cent, raised real wages by 6 per cent and lowered the unemployment rate by about 1¼ percentage points. There have also been costs. The boom has led to a large appreciation of the Australian dollar that has weighed on other industries exposed to trade, such as manufacturing and agriculture.

This following report is about the Commonwealth Bank of Australia (CBA). The Commonwealth Bank is a public business founded in 1911. This company is owned by the Australian government. The Commonwealth Bank operates within the tertiary business sector.

There has been a rapid growth in the service sector jobs and a strong decline in manufacturing employment (Murphy and Watson, 2009). Since the economic boom in the 1950s and 1960s, the Australian economy has been unable to stand the growth of living standards appreciated by households in that period.

Australia is the world 's 13th largest economy (as on 2016), with output as measured by gross domestic product and world 's 19th largest economy (as on 2016), with output as measured by gross domestic product at purchase power parity.

While our manufacturing area has been underperforming due to strength of the dollar, the OECD points to a good future for selling, and buying items from overseas. In the latest Australian report, the OECD forecasts a general pickup in demand to offset buyers and investment in the supplies area. Although it has been warned that there will be fast growth in house prices and mortgage lending demands will continue as we pay close

During my lifetime the Australian economy has been one of the strongest and most consistent in the world. There are a multitude of factors that have led to this and allowed the Aussies to be in this position. One of them being steady GDP growth rates, averaging around 3.5% annually (Heritage.org). Australia has also benefitted from considerably low inflation and unemployment rates. With this mixture of GDP growth, low inflation, and unemployment, they consistently set themselves up to be one of the strongest economies in the region, as they ranked third in the ranking of regional economies (Heritage.org). Another reason for Australia’s ongoing success is primarily because of the growth in foreign demand of importing

Over the past five years the Australian dollar has significantly dropped in value, this holds significant impact for key areas in Australia’s international growth. Looking at charts from the past 5 years compared to the past 20 years, it was easy to see that the Australian dollar is currently sitting at an average rate, whereas from 2010 to 2013 the Australian dollar was at an unusual peak Pettinger, T. (2013). The International Monetary Fund’s latest forecasts show economic growth in Australia staying under 2.5% and below global trends in 2016 before a recovery over the next two years Gurrib, I. (2012). The significant factor in slower growth is the shrinking activity in China, Australia’s biggest export destination, which means fewer

Following release of a report by Real Estate Institute of Queensland showing the market has moved beyond the bottom of the cycle and is now shifting towards recovery and growth it may be as good a time as any looking to invest in property in the picturesque town of Mackay.

The fiscal, macroeconomic and monetary policies have been used to stabilize the Australian economy. A fiscal policy is when the government budget is used to manage economic activity. This means government spending and government taxation levels are altered to support long term economic growth. A monetary policy refers to the Reserve Bank of Australia’s (RBA) use of interest rates (cash rate) to influence the level of economic activity. Most importantly, the RBA sets interest rates to increase economic activity or decrease economic activity based on a few economic indicators. The macroeconomics is concerned with the performance of the economy.

In the overview to their Statement on Monetary Policy (RBA 2016, p.1) the RBA note that Australia 's economic conditions have eased of late. The reduction in the cash rate comes off the back of the lower than expected inflation figures which would have forced the Bank 's hand on interest rates, with the CPI decreasing during the March quarter by 0.2%. It is interesting to note that although the Bank does not note the decline in inflation as a driver for the rate

When the crisis hit Australia, we had robust foundations those being budget surpluses, debt fee and favourable terms of trade, but little did we know these strengths would be tested very shortly. Unlike the US financial system Australia prior to the GFC had implemented policies that prevented high risk individuals from obtaining a loan and hence financial institutions did not require ‘capital injections’ from the government (Reserve Bank Australia, 2010).

The Central Banks of the world have a role in today’s society to provide stability to the economy. Through monetary policy, the Central Banks must utilize the daily economic data in order to make policy decisions that attempt to ensure continuous growth and prosperity. The Central Banks do this through regulating inflation as well as “implementing specific goals such as currency stability, low inflation and full employment” (Heakal). In 2008 the global financial crisis hit numerous nations around the world and each Central Bank saw their economies crash, consumers lose market confidence, investors stop investing, and banks stop lending. If the money stops circulating in the economy “banks [can’t] provide customers with a variety of basic financial services; [such as] an on-demand source of bank notes; deposits and savings accounts; payment services; and … credit, to both business and households” (Fisher 2). The credit crunch was experienced throughout the world and each Central Bank laid out their plans in order to halt and begin recovering from the crisis and set the economy back to a stable 2% inflation. Along with The Federal Reserve, the Bank of England’s conventional attempts at restoring the economy never had enough of an impact to jump start the economy. An unconventional crisis called for unconventional resolutions. The Bank of England turned to unconventional monetary policies when all else failed. The utilization of the practice of quantitative easing and