Need URGENT help for Economics essay (1 Viewer)

[Ekman]

Hey guys, I have to write an economics essay based on trends, factors and implications of the exchange rate system on the Australian economy. Im kinda clueless about what stats I should use. Can anyone pls help?

 

[RivalryofTroll]

So what's the exact question?

 

[Ekman]

Well I guess ill find out tomorrow... im trying to find general stats behind the impacts of the exchange rate on the Australian economy in terms of the BOP.

 

[RivalryofTroll]

Well I guess ill find out tomorrow... im trying to find general stats behind the impacts of the exchange rate on the Australian economy in terms of the BOP.

From your original post.

TRENDS:
- I guess you should have an exchange rate (let's say an average or a 'range') in certain 'periods'.

How was the AUD from 2003 to 2007? The first phase of the commodities boom.
How was the AUD from 2008 to 2009? The GFC [$0.64 (2008)]
How was the AUD from 2010 to 2011? Second phase of the commodities boom --> 2011 was its peak period [around $1.09 (2011)]
How was the AUD from 2012 to now? Basically a period of slowing growth in the Australian economy (AUD has declined since 2011)

Factors

- Causes of appreciation/depreciation.

For example, you can quote how a rise in commodity prices (find a stat somewhere for this e.g. how commodity prices have increased from the 2003 to 2007 or 2011 period) contributed to a rise in the exchange rate (which clearly happened during the Mining Boom).

Another example is that after 2012 or so, the demand for AU commodity exports has declined (due to China's weaker growth and other factors in the Chinese economy) and thus, contributed to a decrease in the demand for AUDs and thus, a depreciation of the AUD. So find a stat which reflects such decline in demand for exports.

Implications

- Essentially, the effects on the AU economy.

We're concerned with FIG --> Firms, Individuals and Government.

Firms --> for example, depreciation/appreciation of AUD affects their ability to be internationally competitive.
Individuals --> for example, depreciation/appreciation of AUD affects their ''purchasing power'' (of imports).
Governments --> any BOP implications would come here.

You might want to find corresponding BOP figures (CAD & KFA) to the ''trends'' in the exchange rate.

 

[Ekman]

Thank you so much!

 

[RivalryofTroll]

Thank you so much!

No problem, that being said - it's only a guide to what you may need.

Not too sure on how your teacher expects you to structure your essay. Deconstruct the question the best you can and you should be fine.

 

[Ekman]

Basically everything you said was literally based on the structure of my essay. Apparently the essay tomorrow is going to be either about the effects of reduced protection or the trends and implications of the exchange rate on the Australian economy.