The Australian Government’s Implementation of the Economic...

Inflation can be described as the sustained increase in the general level of prices over a given period of time, usually one year. Inflation can have negative effects on many of the key economic outcomes such as economic growth, exports, international competitiveness and income inequality. Inflation is measured in Australia by the Consumer Price Index (CPI); the CPI outlines the movement in the prices of a basket of goods and services that are weighted according to their importance for the average Australian household. The annual rate of inflation is measured by the percentage change in the CPI over a period of a year, highlighted in Figure 3.1 . Recent Trends in Inflation Australia’s most significant macroeconomic achievement of†¦show more content†¦Economic Justification of the Economic Stimulus Plan with regards to Inflation In order to reduce inflation the Australian government has traditionally implemented both contractionary fiscal and monetary policy. This would involve an increase in taxation or reduced government expenditure as well as increases in the official cash rate which would lead to a rise in interest rates in the economy to contain aggregate demand. However, during a period of global recession the Government’s implementation of expansionary fiscal and monetary policy saw taxation revenue fall and government spending increase, sending the budget into deficit by -$32.9 billion in 2008-09 . The 2009-2010 Budget continued expansionary policy to support economic growth and slow the rise in unemployment. The falling inflation rate of 1.5% in 2008-09 , meant it no longer played dominant role in policy making decisions. The tradeoff between inflation and unemployment can be observed in Figure 3.5 . Figure 3.5 illustrates the short run tradeoff between inflation and unemployment observed by New Zealand economist A. W. Phillips in Britain in the 1950s. A government attempting to decrease unemployment to a level below 4%, by an increase in government spending may tradeoff more inflation from 2% to 5% for less unemployment from 4% to 3%. Conversely, a government could cut government spending to tradeoff less inflation from 5%Show MoreRelatedFederal Government failure led to the health and safety of workers involved with the Home1300 Words   |  6 Pagessafety of workers involved with the Home Insulation Program being compromised. In 2009 the Australian Government introduced the home insulation subsidy scheme as an economy stimulus. This essay argues that the Federal Australian Government was responsible for the health and safety of workers involved with that programme. It will show that the Government failed to implement the regulation of a stimulus program correctly. It will discuss the positives and negatives that came from the program in regardsRead MoreEssay on The Impact of the Global Financial Crisis on Economic Growth4072 Words   |  17 PagesEconomic growth The impact of the Global Financial Crisis on economic growth As a result of the global recession, Australia’s GDP was forecasted to contract by 0.5% in 2009-10 in comparison to other advanced economies which were expected to contract by 3.75% in the same year. However minor the reductions in GDP, it was evident that Australia was not exempt from the global recession although is better placed and is expected to perform better than almost all other OECD economies. The global recessionRead MoreThe Role Of Fiscal And Monetary Policies1938 Words   |  8 Pagesof the economy. The four main macroeconomic objectives are full employment, external balance, economic growth and price stability. The changes to rates and implementations from the Government will be documented in terms of months. Not all rates change monthly (eg. GDP presented quarterly) but all trends such as unemployment and expenditure and analysed in time brackets of months according to the economic report booklets. The government and RBA are continuously analysing trends and sta tistics, andRead MoreImpacts of Global Financial Crisis on Hrm Policies8256 Words   |  34 Pagesmanager. In the book of Jim Collins â€Å"Good to Great†, he does not agree with the old adage â€Å"People are your most important asset†. According to him, employees are not the most important asset of the company but the â€Å"right† employees are. In a trouble  economic  condition,  HR managers  must develop a strategy that will keep the most talented employees in your  organization  and at the same time, discourages the â€Å"not-so† talented employees from hurting the company’s operations. The global crisis is pushingRead MoreDavid Jones2765 Words   |  12 Pagesdecline department stores from operating on Sundays reduces the profitability of this market sector (The Australian, 2009). Additionally, the threat of climate change will increase energy costs and put strain on David Jones’ operating efficiency (Annual report, 2008). Economic: The global financial crisis has resulted in a decline in consumer spending and confidence. However, government’s stimulus package may reduce the impact of the crisis and expected to have positive impact on retail sales, atRead MoreDavid Jones3817 Words   |  16 PagesDAVID JONES 8th October 09 Strategic Recommendations Report 08 Fall Executive Summary The Australian retail industry is experiencing significant changes in both macro and industry environments. Companies are required to improve customer service quality to retain customers as rivalry for customers is increasing due to the rising amount of online retailers. To meet this challenge, David Jones should expand into online retailing. Building customer loyalty will determine the viability of theRead MoreAcer Swot Analysis/Pest Analysis5254 Words   |  22 Pagesmarket share in other regions has risen. On 27 August 2007, Acer announced plans to acquire its US-based rival, Gateway Inc, (see APPENDIX 1) for US$710million. Acer’s chairman stated that the acquisition â€Å"completes Acer’s global footprint, by strengthening our US presence†. In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell (see APPENDIX 2). 2 Global Operations Australia The Australian part of Acer is Acer Computer Australia (ACA). The subsidiary was establishedRead MoreAcer Swot Analysis/Pest Analysis5264 Words   |  22 Pagesshare in other regions has risen. On 27 August 2007, Acer announced plans to acquire its US-based rival, Gateway Inc, (see APPENDIX 1) for US$710million. Acer’s chairman stated that the acquisition â€Å"completes Acer’s global footprint, by strengthening our US presence†. In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell (see APPENDIX 2). 2 Global Operations Australia The Australian part of Acer is Acer Computer Australia (ACA). The subsidiary wasRead MoreSales and Marketing for Financial Institutions80443 Words   |  322 Pagescustomer relationship management and legal compliance. Subject learning outcomes After successfully completing this subject students should be able to: describe the marketing and sales functions in a financial institution design a marketing plan and sales plan for a financial institution assess different buyer behaviour models and how these relate to the various market segmentation approaches assess the different promotional and communication activities used by financial institutions to acquire customersRead MoreContemporary Issues in Management Accounting211377 Words   |  846 Pagesilluminate practice and to provide ways of improving it. Although always appealing to his economic understandings, he has been open to a wide variety of other ideas, recognizing their intellectual strengths and capabilities rather than making artificial distinctions between what is acceptable and what is not. He also has contributed widely to the accounting literature, taking forward the British tradition of economic theorizing in financial accounting as well as being a constant so urce of creative thinking