Do you think the adopted expansionary monetary policy

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Reference no: EM133436107

Assignment:

Australian economy: It's time to start budget repair (afr.com)

Suppose you are writing a report to the Board of ConnBank regarding the attached article. In the report, you need to comment on the attached AFR View and then answer the following questions using the knowledge from this course:

(a) Briefly summarise the main issues discussed in this article (300 Words). What are the concerns associated with the economy in 2023? (at least 300 Words).

(b) Use the knowledge from this course, such as demand and supply, opportunity cost and tax, as the basis for describing the Australian economy over the last three years and its likely development in next two years. Note that you need to use the references and quarterly (or monthly) data to support your arguments

(c) Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them. Based on your data plots in part (b), provide reasons for the Reserve Bank of Australia's (RBA) move to increase the interest rate. Do you agree or disagree with their policy move?

For example, you can explain the effectiveness of the increase in the interest rate on declining (or boosting) demand (i.e. consumption and investment in Australia). Or, you can explain the role of government policy in increasing the effectiveness of increasing the economic growth in Australia.

(d) Do you think the adopted expansionary monetary policy should be used in 2023? If not, why? Your report will be assessed according to both data acquisition and analytical capacity (e.g., tables/graphs).

(e) Based on your argument on the government policy in Australia, what side effects might this action have on the housing market if a lot of international students come to Australia to study?

Reference no: EM133436107

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