Skip to main content

Australian Government and RBA policies

 Introduction

Government and RBA policies of a country affect a country’s economy in a significant way. This article will deal with the government and RBA policies of Australia to discuss the effect of their policies on unemployment. This article will also discuss impact of government and RBA policy on inflation and output. 

A. Impact of government and RBA policy on unemployment 

The unemployment rate in Australia declined after 2020 and currently stands at 3.5 per cent. One of the factors that contributed to decreasing in unemployment rate is effective government policies. Some policies by Australian government include a wage subsidy program, an employment service policy and an unemployment payment policy. In employment services policy, the Australian government funds employment. In employment service policy the government of Australia funds employment services to provide support to people to find and keep a job. In this policy, services include assisting people during their search for a job. 

Moreover, these service programs also assist individuals to write their resumes (Abs.gov.au, 2022). This policy has contributed to reducing unemployment in Australia as it helps individuals in almost all ways to find and keep a job. For instance, training programmes are also conducted under this policy to increase employability skills of people that are not employed. In addition, this policy also assists unemployed people to start their own businesses. Under this policy, government of Australia conducts employment programmes that assist such as jobactive, transition to work, parents next and others. Under these programmes, the Australian government attempts to reduce unemployment in the country. Besides, monetary policy by RBA also exists that controls interest rates (RBA,gov.au, 2022a). RBA could decrease the interest rates to lower unemployment, however, it will increase inflation. 

B. Impact of government an RBA policy on inflation

The inflation in Australia is at a record high since 2020 and the factors contributing to it include Covid-19, the Russian-Ukraine war and RBA monetary policy. 

Inflation in Australia increased significantly after covid-19 and the country experienced highest inflation rate since 1990 when inflation reached 6.1 per cent (Forbes, 2022).  The interest rate of a country plays a crucial role in controlling inflation. Lower interest rates in Australia contribute to rising inflation (Theguardian, 2022). This is by the reason of the fact that low-interest rate results in an increase in people borrowing from banks and reduces savings. 

As a result, demand increases leading to inflation. The interest rate in Australia has been extremely low until 2020 (Worldbank.org, 2022). The policy that determines interest rate in this country is Monetary Policy. Due to lower interest rates and other factors inflation in this country rose to a record high in 2022 standing at 7.3 per cent. At present, the government of Australia and RBA has been increasing interest rate to control rising inflation in the country. 

C. Impact of government and RBA policy on output

The domestic output or production of a country mainly depends on tariff rates of a country. Higher tariff rates lead to increased costs of imported products. This leads to increased production in a country rather than relying on imported products. Australian tariff policy has increased tariffs on many items such as steel and iron products. As a result, domestic production has increased in the country reducing reliance on imported products. Manufacturing production in this country increased significantly in 2021. The manufacturing performance of this country is 100 billion dollars (Industry.gov.au, 2022). The tariff policy of this country has been a contributory factor to increasing the output of Australia. The manufacturing output of this country was 85 billion dollars. This is more than a 10 per cent rise from 2020 to 2021. 

The rate of manufacturing in this country has increased more than four times since the 1950s. The manufacturing growth has been strong in this country due to sufficient control and regulation of tariff policy (Abs.gov.au, 2022). Besides, Australia also has an industrial policy to increase productivity in this country. This policy has played a vital role in increasing output of the country as production increased at a fast rate. This policy has facilitated the establishment of manufacturing companies increasing ease of doing business. These are some policies that affected output in the country. 

Conclusion

This article dealt with different government and RBA policies that contributed to impact positively and negatively inflation, unemployment and output in Australia. Policies that affected unemployment include an employment service policy and an unemployment payment policy. Policies that affected inflation are monetary policies with increases in which inflation decreases. Lastly, a policy that affected output is tariff policy of this country. 

 

Comments

Post a Comment

Popular posts from this blog

Academic Skills for Business and Tourism Management

  Academic skills are essential for students to succeed in their studies and future careers. These skills include critical thinking, research, writing, communication, problem-solving, and time management (Bedford and Wilson, 2020). Developing these skills can help me get better grades, have better relationships with my teachers, and become more successful in their courses. In this reflective essay, I will discuss three academic skills contributed to my success in Business and Tourism Management. Academic skills such as critical thinking, research, and time management are essential for my studies. These skills allow me to analyse and evaluate information, locate and use data sources effectively, and plan and prioritise my time effectively.  Discussion  Academic skills are the skills that students need to succeed in school and college. They include study, research, writing, critical thinking, communication, problem-solving, and time management (Cottrell, 2019). These s...
Post a Comment
Read more

Boeing 787 Project

 Introduction Boeing 787 is a project they flew their flight on October 26 2011, they flew their first commercial flight.  This flight has run between Tokyo to Hongkong. This flight was special, flight and they had decided to market their flight with the tagline “the Dreamliner”. The flight was a special, flight and they have offered passengers 20% fuel efficiency and more open space in the cabin. This flight has run for over 7 years, and the company had spent more money than they have estimated. The flight has much more facilities in comparison o all flights. So this flight has set a new bar for aircraft design and development. As this 787 flight was made by Boeing and they have spent more than 7 years in their flight making. Boeing has put a huge amount of effort into their flight making and they faced different stages of failure then the project got back on track and delved their promise to the people (Boeing, 2022, ).  The project was started in 2003 and the name...
Post a Comment
Read more

Cyber Security Framework

 Introduction Cyber security has become vital for organisations operating in any sector with increased incidents of malware attacks, phishing attacks, DoS and other kinds of cyber attacks. In such a scenario, it is important for an organisation to evaluate its cyber security measures against standard practices to improve and strengthen organisational cyber security. This Article will deal with a case study of WatchIt Capital Ltd., a UK-based firm to implement a secure architecture. There will be an attempt to present a comprehensive plan for this organisation. In an attempt to do this, a security framework will be presented and proposed to the organisation that will be beneficial to optimise cyber security within the organisation. The discussion of this article will contain a list of cyber security capabilities and policies that will be appropriate for WatchIt Capital Ltd. Besides, this article will also delineate cyber security operational processes and metrics for monit...
Post a Comment
Read more