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Published byMorgan Scott Modified over 9 years ago
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Effectiveness and Limitations of Economic Policies Chapter 18 is excellent summary of Topic 3 and Topic 4
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Economic growth Trends – June qtr 2012 = % annual = 3.6% Policy response Microeconomic – long term Macroeconomic – short term Effectiveness and Limitations
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Unemployment Trends – Aug 2012 = 5.2% Policy response Labour market reform (microeconomics) Monetary Policy/Fiscal policy Effectiveness and Limitations Structural problems
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Inflation Trends – June qtr = 0.5% annual = 1.2% Policy response Competition policy Labour market Monetary Policy Effectiveness and limitations
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External Stability Trends- June qtr CAD = -$13($ b) BoGS deficit $247m annual = -$ 40b Net foreign debt = $742b Net Foreign Liabilities = $880b Policy response Micro reform Fiscal Policy Effectiveness and Limitations
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Distribution of Income and Wealth Trends – increasing gini co-efficient Policy responses Fiscal Policy Employment Effectiveness Incentive vs poverty
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Environment Trends – Carbon Tax Policies Regulation vs market based International agreements Effectiveness ESD
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Limitations of policies Time lags Fiscal Policy- short term (months) Monetary Policy- medium term (6-18 months) Microeconomic Reform – Long Term (20 years)
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Political factors Election economics Pressure from lobby groups Senate obstruction
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Global factors Globalisation and resulting external stability- exchange rates/CAD/FD External Shocks- oil prices and international business cycle International organisations and trade agreements
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The Final Summary Pages 340-355
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