~dEjA vOuX~
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I hate external stability with a passion, and I was wondering how I would go about writing an essay on external stability and policies, even where I could start from. Any ideas? Any help is greatly appreciated.
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policies and external stability help (1 Viewer)
- Thread starter ~dEjA vOuX~
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laracroft
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i would jsut do the usual, explain what external stability is: the different components that effect external stability
then discuss the different policies that can be used to influence the different componenets, like CAD and exhange rates...and what the effects are, and flow on effects.
discuss whether these policies are successful, or have been in the past, or like with monetary policy, how its limited in effecting external stability,
then u should b rite
then discuss the different policies that can be used to influence the different componenets, like CAD and exhange rates...and what the effects are, and flow on effects.
discuss whether these policies are successful, or have been in the past, or like with monetary policy, how its limited in effecting external stability,
then u should b rite
absolution*
ymyum
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The main things i talk about in ext stability essays are CAD and its effects and the exchange rate fluctuations and their effect. By effect i mean its effect on growth, inflation, unemployment and to a lesser degree environmental management and inequality of incomes.
With respect to policies used there is of course micro and macro policies.
Micro policies which aim at the supply side of the production possibility curve aim the increase efficiency etc. Explain. (general explaination) Thus, more produce. Thus higher domestic supply leading to less need for imports. Etc.
Tariff Reform deserves particular mention. Ie. Lower world prices due to tariff reduction leads to higher incentives for efficiency for local producers leading to efficient resource usage and higher production levels leading to lesser need for imports. leading to reduction in Goods balance and therefore lower CAD.
Taxation incentives for businesses in specific industries deserves a mention. Ie. GST abolishing indirect taxes which was unfair to specific industries replacing it with a flat 10% tax rate. The effects of this on industry ie. better bale to predict profit margins therefore more equitable sharing of resources namely production and labour costs. etc.
National competition deserves a mention. ie. competetitive neutrality leading to more incentives for businesses in monopolised industires. This ties in with deregulation of PTEs which derserves particular mention. Opening up of markets leads to increased demand for AUD and thus exchange rate goes up.
Mention macro policies such as monetary policy its effect on the exchnage rate. ie if the cash rate goes up so does the XR with increased demand for AUD.
Fiscal policy and how spending affects industry, providing infrastructure, incentives for workers etc. Usual shit.
If you havnt already mentioned the effect of XR fluctuations on the CAD and interest/debt re-payments mention it.
Recent trends in Australias stability. Ie. 1990s > sustainable level of 5.0% CAD of GDP. Also, surpluses of fiscal policy leading to the repayment of debts within the public sector leading a healthier credit rating and lower national debt/liabilties.
Then sum up as all this leads to less risk of external shock should global markets fuck themselves over. Mention Asian Crisis, 9/11, US IT stock bubble burst as examples.
Of course youd want to add more than i said but yeah thats basically how id approach it. Im probably wrong though.
With respect to policies used there is of course micro and macro policies.
Micro policies which aim at the supply side of the production possibility curve aim the increase efficiency etc. Explain. (general explaination) Thus, more produce. Thus higher domestic supply leading to less need for imports. Etc.
Tariff Reform deserves particular mention. Ie. Lower world prices due to tariff reduction leads to higher incentives for efficiency for local producers leading to efficient resource usage and higher production levels leading to lesser need for imports. leading to reduction in Goods balance and therefore lower CAD.
Taxation incentives for businesses in specific industries deserves a mention. Ie. GST abolishing indirect taxes which was unfair to specific industries replacing it with a flat 10% tax rate. The effects of this on industry ie. better bale to predict profit margins therefore more equitable sharing of resources namely production and labour costs. etc.
National competition deserves a mention. ie. competetitive neutrality leading to more incentives for businesses in monopolised industires. This ties in with deregulation of PTEs which derserves particular mention. Opening up of markets leads to increased demand for AUD and thus exchange rate goes up.
Mention macro policies such as monetary policy its effect on the exchnage rate. ie if the cash rate goes up so does the XR with increased demand for AUD.
Fiscal policy and how spending affects industry, providing infrastructure, incentives for workers etc. Usual shit.
If you havnt already mentioned the effect of XR fluctuations on the CAD and interest/debt re-payments mention it.
Recent trends in Australias stability. Ie. 1990s > sustainable level of 5.0% CAD of GDP. Also, surpluses of fiscal policy leading to the repayment of debts within the public sector leading a healthier credit rating and lower national debt/liabilties.
Then sum up as all this leads to less risk of external shock should global markets fuck themselves over. Mention Asian Crisis, 9/11, US IT stock bubble burst as examples.
Of course youd want to add more than i said but yeah thats basically how id approach it. Im probably wrong though.
~dEjA vOuX~
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thanks guys
absolution*
ymyum
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dont say thanks... say rep.
absoltuion if i was i would check y definitions.... because u have the write content, but i dunt think ur talking about coreectly mate.... read up, clariffy it...
for e.g. Tariff Reform - levels leading to lesser need for imports........... that is completely wrong.... tariffs are there to increase market share, and ur saying that by removing them ur increasing market share :| so think about how u express that idea... you seem to have decent knowledge i dno if that was just carellessness but u should address it none the less
soe other stuff too, just re read wat u wrote
for e.g. Tariff Reform - levels leading to lesser need for imports........... that is completely wrong.... tariffs are there to increase market share, and ur saying that by removing them ur increasing market share :| so think about how u express that idea... you seem to have decent knowledge i dno if that was just carellessness but u should address it none the less
soe other stuff too, just re read wat u wrote
~dEjA vOuX~
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...but I did rep you