How successful has the Australian Government and the Reserve Bank of Essay

How successful has the Australian Government and the Reserve Bank of Australia been in running the Australian economy over the l - Essay Example Trade policy in Australia supports open trade as well introduction of Doha Round of multilateral trade negotiations which promoted economic growth for 17 consecutive years just before the global financial crisis. This writing analyses the degree of success that the Australian Government and the Reserve Bank of Australia been in running the Australian economy over the last two years. Australia’s economy is believed to have performed successfully in the recent years due to policies and strategies that the government and the Reserve Bank of Australia have made. Although there have been challenges and some sort of inconsistency in the economic growth for the last two years, the government has done tremendous things to boost the economy. According to Greber (2013, n.p), the Australian government has attempted to curb debt but the budgetary position has not fared on very well in the last few years leading to higher deficits and high level of unemployment. Additionally, there has bee n a reduction of revenue accompanied with increase in expenditure, which has greatly strained Australia’s budget for the last two years. However, the budget deficit was lower than the Europe’s making Australia to be in a somehow better situation compared to the region. Australia’s credit rating is currently AAA but the credit rating agencies have received strong criticism since the 2008 financial crisis. The agencies could not detect the jumble financial products that led to eventual fall of various financial institutions thus raising lots of questions regarding reliability of credit ratings. It is therefore apparent that dynamics of microeconomic indicators be used in determining the strength of Australian economy. On the other hand, Australia is one of the largest capitalist economies in the world and in 2011; it was position 13 in terms of national economy. The economy is dominated by service sector which makes up a bigger percentage of the GDP although econo mic growth mostly depends on the mining sector. According to Australian Government (2013), the government has somehow enhanced economic freedom thus making her economy the most free in 2013 index. The free economy has been consistent for the last two years especially freedom from corruption and business freedom. The government’s commitment to economic freedom as well as openness to investment and global trade has made Australia to rebound so quick from the global recession. This is actually plausible because most countries have not been able to recover from the crisis. Unfortunately, the government has not done much in terms of labor and poor management of expenditure. According to Thirlwell (2013, n.p), government and the Reserve Bank of Australia have ensured stabilized fiscal and monetary policies thus allowing banks to withstand the global financial crisis. In addition, public finances have somehow been managed well thus reducing the national debt compared to other econom ies. The government has created a stable and transparent climate for doing business making it one of the most steadfast and appealing place for entrepreneurs. There is also an independent judicial system, which has ensured protection of property rights and further allows easier and reliable enforcement of contracts. There is a tradition of clean and fair government that has smoothly worked for the last two years thus reducing bribery of public officials. Moreover, Australian government has boosted and attracted investors