The paper "Reserve Bank of Australia Interest Rate Regime" is a perfect example of a micro and macroeconomic case study. As of 2010, the Australian economy has withstood the after-effects of the Global Financial Crisis (GFC) in a healthier economic standing than comparable western economies. However, the debate has emerged describing Australia as a two-edged economy based on the performance of main industries: mining and retail, manufacturing and reality. The allusion to a two-speed economy has in general been taken to mean the fairly speedy rate of growth in Australia’ s mining industry, compared with sluggish growth in other industries.
The same has been reflected in wages and earnings as measured by the gender pay ratio. The RBA through interest rates manipulation has been able to take Australia through the GFC. Its speedy action was among the numerous factors that put away Australia from an economic downturn. The fundamental might of the Australian economy, which has helped it to steer clear of downturn all through the GFC, the Dot-Com ruin plus the Great Depression, was established on key economic transformation executed for the period of the Hawke-Keating rule along with the early Howard duration.
Strategists have to replicate on this information and be pompous of Australia’ s success. Government spending in health care services, education, skills and schooling along with infrastructure is essential to keep the economy strong. 2.0 Introduction On the onset of 2010, it was clear that Australia had overcome the pressing after-effects of the Global Financial Crisis (GFC) in a healthier economic standing than analogous western economies. In addition, by evading two successive quarters of downbeat growth, Australia managed to shun a technical-economic slump.
The country was undoubtedly in a better situation to handle the troubles. This has been accredited to various factors. The Governor of the Reserve Bank of Australia (RBA) linked it to growth in China along with ‘ prudent fiscal and monetary frameworks’ , the ‘ economy’ s flexibility’ plus the ‘ relative strength of the financial sector’ (Stevens 2009, p. 9; Satyajit 2012, p. 1). On the other hand, the debate has emerged describing Australia as a two-edged economy based on the performance of main industries: mining and retail, manufacturing and reality (Bewley 2011, p. 18).
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