External Stability (HSC SSCE Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
External stability in Australia (3 key aspects)
External stability in Australia (3 key aspects)
Sustainable current account, managing foreign liabilities, stable currency
'Consenting adults' view of current account
'Consenting adults' view of current account
CADs from private decisions, not govt failures; no intervention needed
Why monetary policy NOT used for external stability now
Why monetary policy NOT used for external stability now
Temporary impact, attracts capital inflows, worsens net primary income
Fiscal consolidation strategy
Fiscal consolidation strategy
Balanced/surplus budgets over cycle; reduces govt call on savings
Superannuation guarantee rates: July 2023, 2024, 2025
Superannuation guarantee rates: July 2023, 2024, 2025
11% (July 2023), 11.5% (July 2024), 12% (July 2025)
How superannuation guarantee improves external stability
How superannuation guarantee improves external stability
Boosts national savings, funds invest overseas, improves net income
Why microeconomic reform most effective for external stability
Why microeconomic reform most effective for external stability
Targets root causes, improves competitiveness, lasting improvements
RBA inflation target band
RBA inflation target band
2–3%
GFC lesson: govt response to private bank debt
GFC lesson: govt response to private bank debt
Govt guaranteed all private borrowings of Australian banks (2008)
Australia's recent current account shift
Australia's recent current account shift
Shifted from deficit to surplus (savings exceeded investment)