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

The Impact Of The Global Financial Crisis On The Australian Economy

2936 words - 12 pages

Mid September 2008 saw a significant change for the Australian economy, with the collapse of the Lehman Brothers triggering the Global Financial Crisis. The Global Financial Crisis was characterised by a tightening in the availability of money from overseas markets and resulting in governments having to intervene to maintain market stability. The Australian economy and its leaders generated considerable discussion about the prospect of a global recession, while most expected the financial crisis would have a major impact on the Australian economy, a factor that was not considered was the immediacy of its effects. The December quarter of 2008, saw business stocks devalue by $3.4 billion, the largest fall on record. In addition, there was a considerable softening in property prices, resulting in many companies/people having too much debt vs. too little wealth. With this, consumer confidence plummeted which in turn deteriorated consumption. Throughout the month of September and into October, the financial crisis spread from the United States to Europe, and all around the global economy, with economies contracting in growth.

In response to the most challenging global economic conditions since the Great Depression, the 2009-2010 Budget and the Economic Stimulus Plan focused on nation building and was crafted to boost employment, create a solid foundation for future growth and place the Australian economy to capitalise on the global recovery.
Key Initiatives

Stimulus now and investment for the future

A balanced stance on fiscal policy was targeted by the Government in response to the global recession between short and long-term policies. These measures involved bonus payments to low and middle-income Australians to instantaneously add to demand where it was needed the most, and where it would be most effective.

The Government allocated $12.2 billion for targeted bonus payments to aid households and support economic growth. The payments consisted of a Tax Bonus Payment, $900 Single Income Family Bonus, $950 Farmer’s Hardship Payment, $950 Back to School Bonus and a Training and Learning Bonus.

This added to the Government’s initiative to support growth and jobs at the present moment in time, by delivering investments needed to strengthen the economy. The net measures on the 2009-2010 Budget endeavoured to raise the level of Gross Domestic Product (GDP) by three-quarters of a per cent in 2009-10, providing an extra boost to demand when the economy needed it the most.

Supporting Australian small businesses

The 2009-2010 Budget saw the Government recognise the vital contribution made by small businesses to the economy. Small businesses contributes approximately four million private sector jobs in Australia and therefore to support small businesses from feeling the effects of the economic downturn, the Government introduced measures to assist business investment, managing cash flows and improving online capabilities.
Under the...

Find Another Essay On The Impact of the Global Financial Crisis on the Australian Economy

The Global Financial Crisis and Its Impact

2217 words - 9 pages looking more optimistic in the short term as their economies were not as integrated into the global financial market system. Nevertheless, the escalated impact of the crisis did affect the real economy of developing countries especially on the export-orientated nations. As the demand of goods and services has been weakening from the developed countries, the output of manufacturing or services companies decreased, which directly related to the

The Impact of the Oil Crisis on the American Economy

5691 words - 23 pages The Impact of the Oil Crisis on the American Economy With the current spike in oil prices, many American consumers have asked, 'what is going on?' In order to fully understand the current situation and how it is affecting the economy one must look at a variety of factors including: the history of oil crisis in the United States, causes of the current situation, and possible outcomes for the future. It is only after meticulous research in

Impact of the Current Global Financial Crisis on Human Resource Management

2484 words - 10 pages Financial Crisis and Human Resource Management in Thailand: The impact on Equity Perceptions Institution Studies of Management & Organisation, 34(1), 83-103 Aycan, Z. & Kabasakal, H (2006). Social Contract and Perceived Justice of Workplace Practices to Cope With Financial Crisis, Group & Organization Management, 31(4), 469-502 Cohn K.H. & Newbold, P.A. (2009). Innovation in the Face of the Economic Recession, Journal of Healthcare

The Global Financial Crisis

618 words - 2 pages The global economic crisis beginning mid-2007 was and still is an unsettling event in the history of the world economy. But politicians today, and in fact, many major corporations of the world have found that it was beneficial simply to ignore it. But in October 2011, the world saw one of the largest uproars ever seen in the face of the economic crisis. From New York to Rome, the public voiced dissatisfaction with government policy fueled by

The Global Financial Crisis

1000 words - 4 pages The global financial crisis has brought wide-ranging changes to consumer spending behaviour and consumption patterns throughout the world with the economic downturn impacting on the spending and purchasing power of people. The findings of a study conducted by Booz and Company in 2008 on consumer spending behaviour revealed that, firstly, the unprecedented confluence of the dramatic rise in oil prices, the substantial deterioration of housing

The Global Financial Crisis

2812 words - 11 pages internal funds. This tends to raise the command for liquidity and therefore the price for liquidity which in twist raises incentive to stipulation liquid possessions extant. As a consequence both the risk regulates return on liquidity provisioning and the whole amount of liquidity in the economy is huge. Reference Allen, I. (2001). The Age of Financial Integration. In l. allen, the global f inancial (p. 223). London: reaktion

impact of global financial crisis on banking sector

1904 words - 8 pages be separated into few types which included commercial banks, Islamic banks, International Islamic banks, investment banks and other financial institutions. In this study, it will mainly focus on the level of efficiency of Islamic banks and conventional banks which located in Malaysia within the period of 2003 to 2012. It is used to determine what does the impact of the Global Financial Crisis brings on the banking industry. Based on the statistic

impact of global financial crisis on banking sector

2820 words - 11 pages , 2011). On the other hand, the asset quality is important to determine the level of lending business of the banks (Australian Bankers’ Association Inc, 2011) and the liability management can be used to determine the credit risk of a bank and its’ solvency level (Masruki, Ibrahim, Osman and Wahab, 2011). Since the objective is used to compare the efficiency level of Islamic bank and conventional bank before and after the Global Financial Crisis

Analyse the role and implementation of monetary and fiscal policies as tools of macroeconomic management to manage the Australian economy through the current global economic crisis

1483 words - 6 pages Macroeconomic management has traditionally seen as a counter cyclical tool used by governments to reduce the natural fluctuation in the business cycle. In the midst of the current global economic crisis, the role and importance of macroeconomic tools have played a crucial role in stabilising delicate business cycles worldwide. In the Australian economy the fiscal policy has had a major impact with the introduction to the two different stimulus

The Global Financial Crisis and The Regulation of Investment Banks

1271 words - 6 pages customers’ confidence and has helped to bring the operations of these financial institutions to the normal operational levels. The regulators should keep a keen overview of their operations to ensure they comply with these regulations. References Podoliakova, K, 2012, Impact of the Global Financial Crisis on the Investment Banking Industry, viewed 28th May 2014, < http://iccbif.kbmf.nhf.euba.sk/files/18%20Impact%20of%20the%20Global%20Financial%20Crisis%20on%20the%20Investment%20Banking%20Industry.pdf>

Analysis of the Impact of Oil Prices on the Global Economy

1197 words - 5 pages 1. Introduction The price of oil becomes the bone of contention recently. Oil price seems to be hitting new highs with the regularity of a metronome. It is a bad news for customers who have to pay more on it. More frightening still, this situation may get worse before it come back to normal. No one can exactly predict when the pendulum will soon swing back again since all uncertain factors existing. From the supply side of view, the OPEC is

Similar Essays

The Impact Of The Global Financial Crisis On Chinese Economy

3304 words - 14 pages The impact of the global financial crisis on Chinese economy In the past two decades, China has enjoyed the one of the world’s fastest growing speeds. And for right now, China has been the most major contributor to the world economic growth. But in the recent years, the global financial crisis already did a huge damage to the Chinese growing economy. Especially in the aspect of exporting sector, China has been hit hardly by this crisis. The

The Impact Of Global Financial Crisis On The United Kingdom

2669 words - 11 pages world than the old world each individual is more likely to concentrate upon his war effort if he feels that his government will be ready with plans for that better world.’ in his December 1942 report (Alderman, 1986, p. 230). On 9 February 1948, Bevan urged ministers and doctors to ‘take pride in the fact that, despite our financial and economic anxieties, we are still able to do the most civilised thing in the world: put the welfare of the sick

The Impact Of Global Financial Crisis On The United Kingdom

7067 words - 28 pages The impact of the National Health Service on the United KingdomIntroductionThis report will look at the National Health Service, which is a significant part of the current welfare state in the United Kingdom. It is for people who would like to know more about health system of contemporary Britain. In this paper, it will begin by looking at the healthcare background and reforms, and will show how the NHS has affected British citizens. Finally

Impact Of Foreclosure Crisis On The Economy

1412 words - 6 pages dream to own their own homes. I have heard people on TV and on the national stage debate the reasons and the impact of the foreclosure crisis on the economy. This debate has been frustrating because people focus too much on arguing who is right or who was wrong; some people claim the foreclosure crisis is from a lack of oversight over mortgage companies that should have been regulated more by the government in how they make their loans. Other