However, much has happened since it went up, including the Blogger outage.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. This is illustrated by its macroeconomic stability in the face of a string of recent shocks, in stark contrast to the macroeconomic chaos which followed the commodities boom of the early s.
A further test of this new resilience will occur at some point when the terms of trade decline — this underlines the need to continue prudent macroeconomic policies.
Reforms have also boosted productivity, with living standards steadily catching up with the best performing countries since the early s. The long-term challenge is to sustain this performance, particularly in the face of population ageing, which will require progress on a number of fronts: Improving fiscal relations across levels of government.
Many public services are funded jointly by the central government and the states. Clarifying roles and responsibilities would raise public sector efficiency.
Particularly in the areas of hospital services and old-age care, fragmentation in decision making leads to cost and blame-shifting.
Addressing these problems has been placed on the agenda. Following a surge in the second half of the s, productivity growth has reverted to its long-run average. Infrastructure bottlenecks have held back export growth in some cases. More importantly, there is still further business in the reform of network industries and inefficient use of water remains a major concern.
The slow pace in overcoming market segmentation and instilling greater competition in these sectors is partly due to the joint responsibilities of the federal government and the states, although, the Council of Australian Governments has recently agreed to a National Reform Agenda that aims to re-invigorate and broaden the reform process.
In this context, improving workforce skills will also be important. Raising labour market flexibility and supply. The recent industrial relations reform is a further move away from a system that had been highly prescriptive. Room for further simplification remains, which would allow greater scope for bargaining over workplace conditions.
In addition, labour supply can be raised further, particularly from lone parents, second earners, disability beneficiaries and those aged over The recent tightening in eligibility requirements for welfare benefits goes in the right direction, but should also be applied to the stock of all beneficiaries.
Currently, one of the main driving forces of economic activity is the global boom in mining commodities in which Australia is a major exporter. The terms of trade are currently around a year high and business investment, especially in mining and associated infrastructure, is growing at double digit rates.
There are some regional divergences in activity depending on the relative impact of these two shocks. The commodity-rich states of Western Australia and Queensland are growing faster than others, especially New South Wales, where house prices have been weakest. Headline consumer price inflation reached 3.
This partly reflects rising petrol prices. CPI inflation, excluding energy and seasonal foods, did not increase and remained in the lower half of the target range.
Reserve Bank of Australia. The interest rate rise should dampen the recent pick-up in household credit and ensure that consumption growth remains consistent with a gradual increase in the saving ratio.
Business investment will be underpinned by tight capacity in commodity sectors and strong profitability more generally. The major uncertainty for the outlook concerns the timing and extent of the eventual downturn in commodity prices.
The continuing strength of China and its seemingly insatiable demand for hard commodities may mean that the upswing is more prolonged and the monetary authorities will need to remain vigilant to inflation risks.
Some sectors have been adversely affected by the commodities boom and the associated increase in the exchange rate. It is important that any policy response to consequential structural adjustment occurs with minimal disruption rather than seeking to prevent adjustment.
How should fiscal policy respond to the substantial terms of trade gains? How large a surplus should be targeted depends partly on how much of the recent surge in the terms of trade will be permanent. Given continuing momentum in global growth, especially from China, the assumption that there may be some long lasting improvement in the terms of trade is reasonable, but there are obvious uncertainties as to the timing and extent of an eventual decline.When comparing the growing economies of Australia and China, there are many aspects to consider including; economic growth, employment and unemployment, quality of life, environmental quality, and the role of the government in health care, education and welfare payments in which needs to be taken into consideration.
Economic Society of Australia (ACT) Christmas Drinks. Event Type: ESA Event. Date: Thursday Dec 13, , pm From: Australian Capital Territory.
The Economic Society of Australia (ESA) ACT invites you to our Christmas Drinks night, where we will reflect .
In its Economic Survey of Australia, the Organization for Economic Co-operation and Development (OECD) described Australia’s macroeconomic performance as impressive, with GDP growth since averaging above 3 per cent a year and growth in real gross domestic income averaging more than 4 per cent (including the terms of trade gains).
Economic and financial conditions obviously differ greatly among countries. Table 1A reports, for a sample of advanced countries, emerging markets and transition economies, key aspects importantly influencing corporate governance. First, it reports economic development and prospects.
In terms of GDP per capita (column 1), emerging markets and transition economies rank still much below . The Bureau of Labor Statistics is the principal fact-finding agency for the Federal Government in the broad field of labor economics and statistics.
A Look at Morgan Stanley Research with Global Director Simon Bound. Morgan Stanley Investment Research is one of the financial industry's dominant thought leaders in equity and fixed-income investing.