This website uses cookies to ensure you have the best experience. Learn more

Economic Reform/Policy Mix, Covers Macro And Micro Economic Reforms In Australia

1450 words - 6 pages

QUESTİON 1the role of the government in a market economy,calls upon the government to perform five functions. These functions are:1. Providing the economy with a legal structure: This is the first and most important function a government should provide and without it an economy may collapse. This function requires the government to ensure property rights, provide enforcement of contract. In order to perform this function, the government should furnish the economy with regulations, legislations, and means that ensure product quality.2. Maintaining competition: Since competition is the optimal and efficient market mechanism that encourages producers and resource suppliers to respond to price signals and consumer sovereignty, the government should fight monopoly power and non-competitive behaviour.3. Redistribution of income: The government should strive to provide relief to the poor, dependent, handicapped, and unemployed. Welfare, Social Security and Medicare programs are examples of programs that support the poor, sick and elderly. These programs are built on transferring income from the high income groups to the limited income ones, through progressive taxes.4. Provision of public and quasi-public goods: When the markets fail to provide the needed goods or the correct amounts of certain goods or services, the government fills in the vacuum. Examples of public goods that the markets do not provide are defense, security, police protection and the judicial system. Education and health services are examples of quasi-public (merit) goods that the market does not provide enough of. The government should provide the first, and help in the provision of the second.5. Promoting growth and stability: The government (assisted by the Fed) should promote macroeconomic growth and stability (increasing the GDP, fighting inflation and unemployment) through changes in its fiscal and monetary policies. The fiscal policies mean the use of taxes and spending.Question 2The economy of Australia is one of the largest capitalist economies in the world with a GDP of US$1 trillion as of 2013. Australia's total wealth is 6.4 trillion dollars. In 2012, it was the 12th largest national economy by nominal GDP and the 17th-largest measured by PPP-adjusted GDP, about 1.7% of the world economy. Australia is the 19th-largest importer and 19th-largest exporter. The Reserve Bank of Australia publishes forecasts of the economy quarterly.The Australian economy is dominated by its service sector, comprising 68% of GDP. The mining sector represents 10% of GDP; the "mining-related economy" represents 9% of GDP - the total mining sector is 19% of GDP. Economic growth is largely dependent on the mining sector and agricultural sector with the products to be exported mainly to the East Asian market.The Australian Securities Exchange in Sydney is the largest stock exchange in Australia and in the South Pacific and ranks 9th in the world in terms of market capitalisation. Australia is...

Find Another Essay On Economic Reform/Policy Mix, Covers macro and micro economic reforms in Australia

China policy mix and economic performance over the last decade

2788 words - 11 pages . Deflation resurfaced during late 2001- end-2002, peaking in April 2002 at 1.3 percent(LiuTian.2005). Falling goods prices were more than accounted for this decline, as most service prices continued to increase moderately.From 1992 to 2003, China government used fiscal policy, monetary policy and supply side policy for achieve their planned goal.2.0 Introduction.All the governments achieve their planned economic targets through the differing

Economic Reform in Russia Essay

1304 words - 5 pages novel economic concept in 1996. It was a society modeled after the capitalist society. High expectations of economic growth even with “shock therapy”--unemployment, social discontent and opportunities for corruption; influence of western politicians and the U.S. policy; and failing to completely reform the communistic system were some factors to why some became rich but led many to misery and an early death. Despite the huge infusions of Western

China and Economic Reform

4634 words - 19 pages Times: 10 August 1994, A7.Cheung, Steven N.S. 'Privatization vs. Special Interests:The Experience of China's Economic Reforms.'Economic Reform in China: Problems and Prospects. Ed. James A. Dorn and Wang Xi. Chicago: University of Chicago Press, 1990. 21-32.'China cracks down on dissent after trade threat lifted,report says.' Hartford Courant: 29 July 1994, A13.'China Stock Is Most Active.' New York Times: 5 August 1994, D5.Dorn, James A. 'Pricing

Economic Indicators in Australia

945 words - 4 pages this and Australia’s reliance on the global financial system, the domestic situation will, in all likeliness, similarly deteriorate. Recession in the Australian economy will occur in the next quarter due to its international links if not the multitude of negative economic indicators.Bibliography•Australian Bureau of Statistics, 2009, “Key National Indicators”, http://www.abs.gov.au/AUSSTATS/abs@.nsf/mf/1345.0?opendocument?utm_id

Alcohol policy reform in Australia,

1890 words - 8 pages The “Alcohol policy reform in Australia: What can we learn from the evidence?” is a scholarly article presented in the Medical Journal of Australia. The article’s main intention is to analyze the World Health Organisation policy target areas, and research by Cobiac and colleagues which I’ll refer to as the ‘Cobiac Report’, and how these measures would effective, in relation to the government new ‘Alco-pops’ tax. The report was published in 2009

Economic Growth and Business Fluctuations in Australia

651 words - 3 pages This report aims to analyse Australian Real GDP from 1975. The most commonly used indicator of economic growth is the annual rise in real gross domestic product (GDP). The GDP is an estimate of the total value of goods and services produced in a year. Real GDP is calculated by using constant dollar term which corrects for inflation.The Australian Real GDP figures are provided to the public at the Reserve Bank of Australia (RBA) website

The Economic Reforms in India Since 1991

1160 words - 5 pages inspired action. The Socialist Utopia powered by the fevered imaginations of Nehru and Mahalanobis which seemed forever doomed to rot at the so called ‘Hindu Rate of Growth’ was now dead and buried, just like them. In the iconic Union Budget of 1991, Singh tabled the New Economic Policy or NEP, which overturned decades upon decades of inefficient policies. Some features of this policy included abolition of industrial licensing, de-reservation of

Monetary and Economic Policy in Latvia

920 words - 4 pages financial distress due to rising defaults on the risky loans it had undertaken. After the IMF, along with Sweden and Finland, contributed 7.5 billion euros in loans, as a condition for this loan it was expected of Latvia to make significant changes in its economic policy which included increasing interest rates, cutting wages, tax increases, and cutting back in government spending, consequently, this would only push Latvia into a deeper

This essay is about china and economic reform in china

1075 words - 4 pages aspect of Chinese economic reform was the decision of China to join the world economy. Deng Xiaoping and his allies hoped to effect this 1979 resolution in two ways: by expanding foreign trade, and by encouraging foreign companies to invest in Chinese enterprises. This policy--denoted the "Open Policy" (Shirk 47)--was a drastic removal from the policies of Mao Zedong and, in fact, from centuries of Chinese political culture. The Open Policy, which

economic policy and global economy

1406 words - 6 pages -impacted economies in Asia, should the Eurozone enter into a full-blown crisis. The Eurozone crisis also impact Singapore's economic ,because of the export rate is decease there are many Singapore's company and factory are close down so that result in unemployment rate increase in Singapore from 2.225% in 2008 to 3.025%in 2009. Singapore's exports to the Eurozone directly account for more than 12 per cent of its GDP, and private sector holdings of

The economic effects (positive and negataive) of immigration in Australia

1672 words - 7 pages migration". Australia's long experience as a 'country of immigration', especially during the post-Second World War era, has given Australia an almost unique capacity not only to cope with new migration pressures but also to develop policy and program approaches which maximise the benefits of immigration (Source: http://www.aph.gov.au/library/pubs/rn/2003-04/04rn46.htm). If immigration policies are developed in an effective manner, the advantages

Similar Essays

Economic Reform/Policy Mix, Covers Macro And Micro Economic Reforms In Australia

1710 words - 7 pages Question:What role do governments have in modern mixed economies such as Australia? Using appropriate indicators (macro economic aggregates) outline the present state of the economy. In what ways is the Commonwealth government using fiscal and monetary policies to influence the Australian economy? What are the main features of the government's micro economic policy? Why is the government concerned about microeconomic reform?Synopsis:The role of

Macro And Micro Economic Factors That Influence Plant Activity

1366 words - 5 pages This paper will first discuss factors that describe and analyze the macro- and micro-economic factors that could directly or indirectly influence plant operations here at ABC Complete Kitchens. Next, it will explain legal considerations that our organization must be prepared for, which are also relative to obtaining credit, having reliable market conditions, and avoiding product liability Capital Investment One of the most important concerns

Economic Reforms In Chile Essay

1922 words - 8 pages several economic reforms that made the success of Chile today. Those measures are also known as the “Chilean miracle”. Following the concept of neoliberalism and the Chicago school of economics. Chile put in application almost all their recommendations such as cutting tariff, opening Chile's markets to global trade and privatizing some state run companies. (OECD report, 2013) As a matter of fact of recognizing the new wealth of a country, joining

Policy Proposal For Economic Reform In Russia

2761 words - 11 pages Policy Proposal for Economic Reform in Russia Despite making a recovery after the 1998 market crash, Russia remains weighted with numerous holdovers from the Communist era that keep its economy from taking advantage of free-market reforms. In short, Russia has not prospered under capitalism because it has not yet discovered it. In order to do so, the Russian government must engage in extensive reform in several key areas: improving the rule