Preview
Preview

Australian Economics Essay

No Works Cited
Length: 2319 words (6.6 double-spaced pages)
Rating: Blue      
Open Document
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Introduction
The year 1996 market a turnaround for the financial system in Australia. It is in this year that the Finance Treasurer announced the formation of the Financial System, Inquiry also known as the Wallis Inquiry, which was intended to check the financial system in the country. Specifically, the Inquiry was mandated to research and analyse the consequences of financial deregulation in the country since the 1980s and; analyse the driving forces affecting change in the Australian financial system, especially in view of technological development. Based on the results of the exercise, the Inquiry was further mandated to provide regulatory recommendations that would be enforced in the country in order to ensure that the financial system was responsive, efficient and flexible to the contemporary needs of Australia. It was hoped that proper regulations would lay the basis for financial stability, better economic performance, integrity, fairness and prudence in the country’s financial system (Commonwealth of Australia, 2009). Prior to this, the financial system had been de-regulated in the 1980s, around the same time that the Australian Dollar was floated (Cameron, 1998).
Upon the completion of the inquiry, the FSI proposed a regulation system based on three agencies namely: i) the central bank; ii) a prudential regulator, and; iii) “a corporations and financial services commission” (Cameron, 1998, p. 4).
Before 1997
The recommendations of the Wallis Inquiry were enacted in 1997 (Bakir, 2003). Before this however, Australia had a largely semi-regulated financial system. The bulk of the regulators back then followed under the commonwealth with the main mandate of overseeing them falling under the treasurer. States also regu...


... middle of paper ...


...stralian financial system. The Wallis Inquiry no doubt did a good job. Starting 1997, the country started experiencing regulations and confidence within the country about the prospects of the financial systems grew. With the checks and balances introduced by the regulators, the financial system is well guarded against careless risk taking by financial institutions, which has led to financial catastrophes elsewhere in the world. The too-big-to-fail phenomenon is one unlucky case where banks in other developed countries take risks hoping that the government can bailout them out. In Australia’s case, this is unlikely to happen since the regulators are always watching. Above all however, is the fact that ordinary consumers, investors and financial services beneficiaries are cushioned from losses that may be caused by laxity on the part of the financial institutions.



Click the button above to view the complete essay, speech, term paper, or research paper








This essay is 100% guaranteed.


Title Length Color Rating  
The Australian Government’s Implementation of the Economic Stimulus Plan - Inflation can be described as the sustained increase in the general level of prices over a given period of time, usually one year. Inflation can have negative effects on many of the key economic outcomes such as economic growth, exports, international competitiveness and income inequality. Inflation is measured in Australia by the Consumer Price Index (CPI); the CPI outlines the movement in the prices of a basket of goods and services that are weighted according to their importance for the average Australian household....   [tags: Economics]
:: 14 Works Cited
752 words
(2.1 pages)
Better Essays [preview]
The Australian Labour Market Essay - The health of a labour market can be judged by levels of unemployment and changes in wage growth. Both of these issues come into play when The Australian Financial Review reports that the Australian labour market has tightened over the past twelve months and comments on predictions for the coming year. Changes in unemployment in Australia is a key issue in this news article. In the last twelve months, unemployment in Australia has dropped from 5.6 per cent to 5.1 per cent which is described as ‘a puzzle’ in the news article....   [tags: Economics]
:: 6 Works Cited
776 words
(2.2 pages)
Better Essays [preview]
Australian Economic Issues Essay - Economic Growth Measurement Economic growth refers to an increase in an economy’s productive capacity, as measured by changes in its real GDP (adjusted for inflation), over a period of time. Growth may be measured quarterly, annually, or year on year (changes from one quarter to the corresponding quarter the following year). Annual growth is used to identify trends in the business cycle, while quarterly growth provides an indication of the economy’s short-term direction, and year on year growth to show annual progress....   [tags: Economics ]
:: 12 Works Cited
1417 words
(4 pages)
Powerful Essays [preview]
The Impact of the Global Financial Crisis on the Australian Economy Essay - 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....   [tags: Economics ]
:: 14 Works Cited
2888 words
(8.3 pages)
Term Papers [preview]
Australian Consumer Law Objective Essay - This essay will examine key aspects of the recent implementation of the Australian Consumer Law (ACL) 2011, which is the largest overhaul in Consumer Law in Australia in the past twenty five years. The ACL replaces 20 existing State and Territory laws into one national law , the legislation was enacted in two main parts as Schedule 2 of the renamed Trade Practices Act 1974 (Cth) (TPA) - Competition and Consumer Act 2010 (Cth) (CCA) . Aforementioned this essay it will outline the key benefits of the implementation of the act....   [tags: consumer protection, economics]
:: 30 Works Cited
1575 words
(4.5 pages)
Powerful Essays [preview]
Essay on An Analysis of the 2003-4 Australian Budget - This research essay will evaluate and judge certain parts of the 2003-2004 budget put forward by Treasurer Peter Costello and the Howard Government on Tuesday the 13th of May. It is my opinion that the budget has not been equitable in some areas of fund distribution. The budget will be assessed on the three following criteria. • The First Criterion: Is the budget equitable to all the areas of our economy. • The Second Criteria: Is the budget equitable to the majority of Australian Citizens. • The Third Criteria: Does the Government Address the Problems of Medicare and Higher Education....   [tags: Economics] 1141 words
(3.3 pages)
Strong Essays [preview]
Economics Assesment Task 2010 Essay - Synopsis: In 2009, the world experienced a Global Financial Crisis (GFC) which caused recession in most advanced nations around the world. In an effort to combat this, the Australian Government created a Stimulus Package to increase aggregate demand. The treasurer, Wayne Swan proposed that $42 billion would be given to both individuals and businesses to lessen the impact of a recession. The package included a one off $950 payment to low and middle-income families, individuals, famers, students and other groups....   [tags: Economics ] 2385 words
(6.8 pages)
Powerful Essays [preview]
Essay on Australian Government Policy - Australian Government Policy The first English settlement in Australia was established in 1788. Before this the Aborigines lived in the land in harmony. However, after the English arrived, the two different cultures were in close contact and had to determine how to coexist. White Europeans did not respect the Aborigines’ right to the land and it’s resources. With brutal force, they took control of the land and claimed it as their own. Australians then developed their own policies on how to deal with the Aborigines, which, as you can expect, bettered their own way of life....   [tags: Australian Aborigines Race Relations Essays]
:: 15 Works Cited
3735 words
(10.7 pages)
Powerful Essays [preview]
Should the Australian Government Privatise Medibank? Essay - The Medibank Australia was founded by the Australian government in 1976, as the Medibank is a largest private health insurer in Australia. The government believes now it’s time for them to move forward and privatise the Medibank at the end of this financial year or next financial year. The reasons why the government is privatising Medibank, is to retain the service and excellence of stages of Medibank clients, ensure the sale development treats medibank workers in a decent manner, as well as to reduce any problems sole over the post years, such as liabilities of the government....   [tags: class inequalities, healthcare, services]
:: 6 Works Cited
886 words
(2.5 pages)
Better Essays [preview]
Economics Q&A Essay - Q1) What is the difference between the official cash rate and the market rate of interest. Explain the mechanism by which the RBA raises the cash rate. Use appropriate diagrams where necessary. The official cash rate is the interest rate set by the central bank for the financial institutions. This rate is adjusted by the central bank via the Exchange Settlement Accounts. The official cash rate is influenced by the transactions taking between the central bank and the financial institutions because such transactions change the money supply....   [tags: Economics ]
:: 3 Works Cited
874 words
(2.5 pages)
Better Essays [preview]