Paper

That said, the local anaesthetic economy and financial markets have not been immune. harvest-tide in the economy slowed to around half a per cent and the unemployment rate has risen by nearly two parting points to around 5¾ per cent by November 2009. The most taken for granted(predicate) impact of the financial crisis on most Australian households was the tumescent decline in equity prices, which reduced the wealth of Australian households by nearly 10 per cent by walk 2009. However, since the trough in equity markets in walk 2009, the local market had recovered half of its decline by the terminal of November 2009. The Australian dollar overly depreciated rapidly and sizeably as the crisis intensified, declining by over 30 per cent from its July 2008 peak. Around the time of the Lehman bankruptcy, conditions in the foreign exchange market were particularly illiquid, prompting the grant Bank of Australia (RBA) to intervene in the market to enhance liquidity. Since March 2009, as fears abated, the Australian dollar largely recovered, reflecting the relative lastingness of the Australian economy.

The credit and money markets in Australia have also proven to be more resilient than in many another(prenominal) other countries, necessitating considerably less intervention by the RBA than occurred in many other countries. In large part this reflected the wellness of the Australian banking system of rules. The Australian banks had almost no holdings of the toxic securities that firmly affected other global banks. The health of the Australian banking system facilitated the effectiveness of the monetary and fiscal response, particularly by allowing overmuch of the large easing in monetary policy to be passed through to interest rates on loans to households and businesses, in staring(a) contrast to the outcome in other developed economies. If you take to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .