Depreciating The Australian Economy

1. The Reserve Bank of Australia Governor's belief that depreciating the AUD would help the Australian economy is a valid one. In depreciating the AUD the economy would be helped due to the increase in imports and trade because the products becoming cheaper in the global market. It would be beneficial for corporations because if they are exporting a large amount of products then the goods are less expensive over seas so they sell more product at the lower price than they would have at the previous higher price. They are more competitive in the global market and as a result, they then can afford to hire more employees which in turn helps the economy. The consumer is hurt because their money then has less value.

2. While helping the corporations