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uniqueusername1

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ye ik its not their main priority its like an unintended benefit i guess like decreasing cash rate can reduce er and improve x
Would do you boys reckon of this q:

This one: propose likely changes to the structure of industry within Australia as a result of current trends in the global economy
 

uniqueusername1

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Well we don’t even had a CAD right now haha. But I guess you can mention how the RBA has indirectly impacted the CA?
Yea I guess so lol. Good thing theres no more CAD. Reduces chance of getting policy q on external stability.
 

notme123

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Would do you boys reckon of this q:

This one: propose likely changes to the structure of industry within Australia as a result of current trends in the global economy
ummmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
no

but fr i would say the mining industry is going to remain strong but the composition is going to change from iron and coal as china phases down demand to meet environmental regulation and they broaden import base (brazils bounced back) and instead, copper, lng and hydrogen (idk if this is mining) are gonna be the new commodities as changes in the global energy market open new sources of comparative advantage, especially copper batteries and stuff

services is def gonna take a while to recover but i heard digital and it services are on the rise so theyll probably be growing in the future, as well aged care as the aging economy becomes more prevalent, while other services such as financial could potentially decline due to ai maybe

lastly etms will also grow such as medical equipment

oh also ag is gonna fall slightly because of china literally destroying the industry but idk japan might be a good trading partner for rice and wool
 

uniqueusername1

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ummmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
no

but fr i would say the mining industry is going to remain strong but the composition is going to change from iron and coal as china phases down demand to meet environmental regulation and they broaden import base (brazils bounced back) and instead, copper, lng and hydrogen (idk if this is mining) are gonna be the new commodities as changes in the global energy market open new sources of comparative advantage, especially copper batteries and stuff

services is def gonna take a while to recover but i heard digital and it services are on the rise so theyll probably be growing in the future, as well aged care as the aging economy becomes more prevalent, while other services such as financial could potentially decline due to ai maybe

lastly etms will also grow such as medical equipment
Yea China's 2060 plan putting pressure on Australia.

Services have taken a hit (particularly education related travel)

Opportunities = banking and insurance where service exports are low.
 

notme123

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also can someone please tell me how interest rates affect aggregate supply i saw it before. Is it like interest rates affecting efficiency of capital in terms of servicing costs
 

uniqueusername1

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also can someone please tell me how interest rates affect aggregate supply i saw it before. Is it like interest rates affecting efficiency of capital in terms of servicing costs
Macro is not really used for aggregate supply. But, low interest rates = more investment in capital and machinery = improved aggregate supply
 

Hiheyhello

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yea it is. Old syllabus. The new one is policy rate corridor.
wait

wait

so do we not talk about how the RBA buys and sells securities to change the supply of money to influence the IRs??

omg pls elaborate has my life been a lie
 

notme123

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wait

wait

so do we not talk about how the RBA buys and sells securities to change the supply of money to influence the IRs??

omg pls elaborate has my life been a lie
ye but now its in a corridor. the corridor doesnt really change anything except for explaining how it gets carried through to banks interest rates. the lending and deposit rates gravitate to where supply and demand meet and thats the cash rate that is carried out by banks
 

uniqueusername1

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wait

wait

so do we not talk about how the RBA buys and sells securities to change the supply of money to influence the IRs??

omg pls elaborate has my life been a lie
you can (used to regulate supply). But you don't wanna waste the entire paper explaining how its implemented. You wanna hop in straight for the analysis.

With some explanation ofc. Just talk about corridor that should be enough. With DMOs you gotta define everything. Define ES accounts. Show the effects etc...
 

uniqueusername1

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[

lolll my teacher has some explaining to do…
na dw DMO's are involved but, thats not how monetary policy is solely implemented (new syllabus extension)

Now its the interest rate corridor + They engage in DMOs occasionally to ensure the the cash rate is near target.
 

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