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5 Cards in this Set
- Front
- Back
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Intro |
- Goals of eco objectives - Goals of policy - Globolisation define and Australia - Floating ER vulnerable - Relating to world boom and recession |
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MBP 1: World Boom |
- China in 2005 - Increase D for commodities (X) - Dependant on China for growth - Two speed economy Stagflation Diagram - Problems of policy e.g contractionary monetary, 5-8% during two speed and when GFC hit |
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MBP 2: World Recession |
- Brazil falling from top 10 economies losing 53% value to USD - Brazil were exporting raw commodities - Policies got really bad - External balance caused debt blowout - Neg multiplier ADAS - Implementing policy its hard to tell which countries would recover and how it would affect trade with them, and Brazils downturn caused fluctuations in the goods we were exporting |
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MBP 3: ER |
- Our dollar remained high due to X's - Appreciation of dollar diagram and definition - Other exports less competitive, diagram with word price - Impact on objectives - Indicators making it hard to see what it would affect - External Balance with gov budget improved - Policy was hard to implement because AUD is floating |
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Conclusion: |
- Cant control external influences through domestic economy - External influences are greater than our power to control them - ER affects all other objectives - Therefore hardest to control |
