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Briefly summarise the main issues discussed in article

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Reference no: EM132258360 , Length: word count:2000

Economics for Professionals Assignment - Research Report

Read the article titled 'Australian dollar tumbles to ten-year low' (Sydney Morning Herald, January 3, 2019), and answer the following questions.

Questions:

(a) Briefly summarise the main issues discussed in this article. Using the Demand and Supply model of exchange rate determination explain how the AUD-USD exchange rate is determined by the market forces.

(b) Using nominal exchange rate data from Reserve Bank of Australia and graphs (monthly data of last three years) analyse the movement in the AUD-USD exchange rate. What factors do you think contribute to the behaviour of the exchange rate?

(c) Summarise the main driving factors behind the recent movement in AUD discussed in this article, including manufacturing PMIs, commodity prices and interest rates. Using the demand and supply framework discussed in part (a), explain how they impact the demand and/or supply in the AUD-USD market.

(d) Assume that you are an Australian firm exporting software products to the United States. Explain the impact of this recent drop in the AUD on your business. Speaking more generally, how will the depreciation of AUD affect Australian economy? Provide a detailed discussion.

(e) Suppose that the exchange rate stabilises at US 70C per AUD. What actions could the Reserve Bank of Australia take in order to bring the exchange rate to US 73C per AUD, and what side effects might this action have on the Australian economy?

Word Limit: 2000 words.

Attachment:- Assignment File.rar

Reference no: EM132258360

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Reviews

len2258360

3/16/2019 3:58:56 AM

Word Limit: 2000 words. The marking guide is uploaded on Moodie. Please refer to the marking guide for marking criteria and question weights. Marks will be deducted for copy pasting of graphs and tables from other sources. Marks will be allocated according to the following criteria: Analytical Ability (60 marks): Correct understanding of the question(s), Definition/explanation of key concepts, Analysis/ discussion of the question ensuring a meaningful flow of ideas in relation to the main theme, Adequate data are presented and graphs properly drawn (where necessary), Relevance of material presented, Display of theoretical knowledge as necessary and Adequacy/coverage of the topic.

len2258360

3/16/2019 3:58:50 AM

Research Depth (20 marks): Evidence of wider reading relevant to the question's, Justification of strong comments/arguments with appropriate references in the text and Relevant data/information gathered from reliable sources. Presentation (10 marks): General formatting (space, paragraphing, page break etc.), Grammar and spelling checks, Appendices if appropriate, Assignment cover sheet/ signed as own, and Tables/graphs, if applicable, are properly prepared and labeled.

len2258360

3/16/2019 3:58:44 AM

References (10 marks): List of references (minimum 5 references) attached, Inclusion of all in-text references in the Reference List, Harvard Style should be followed (author date system) and Alphabetical order should be followed. Marks will be reduced for: Cutting and pasting of graphs and figures from online sources, Evidence of plagiarism /collaboration and Late submission.

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