Part 1: Critical Event Analysis Essay(1,000 word limit)What caused the Global Financial Crisis (GFC)...

Question

Part 1: Critical Event Analysis Essay(1,000 word limit)What caused the Global Financial Crisis (GFC) and why did it spread? What impact did the GFC have on the economy in Australia? How did policy makers respond to the crisis and was the response effective? Discuss.Incorporate each of the following elements into your essay:Undertake an overview of the GFC looking at its causesAddress how the GFC became a 'global' crisisShow evidence of how the Australian economy was impacted by the GFC. Remember to use reputable sources in your research and reference. As part of this task you should focus on key macroeconomic aggregates including economic growth and unemployment.To support your answer conduct desk-top research to draw on data from theAustralian Bureau of Statistics(Links to an external site.)(Links to an external site.(Links to an external site.)). Use official time series data related to Australia's Expenditure on Gross Domestic Product (GDP), Chain Volume Measures to produce ONE relevant chart to support your analysis. (Hint: For this look inKey Economic Indicators GDP Chain Volume Measures Seasonally Adjusted Data DownloadsTable 2). It is important that you reference the data from the ABS that you use to generate your chart. Make sure your chart is focused on the appropriate time period to enable meaningful comparison both pre and post GFC and briefly discuss how this evidence assists in understanding the impact stemming from the GFC on Australia.Focusing upon the Australian economy, use the IS-LM model address the following:i) First, using the IS-LM model, illustrate and discuss the impact of the GFC on interest rates and economic activity. Remember to explain any changes you have made to the curves and/or any shift(s) you have undertaken.ii) Second, as a consequence of what you have shown in step i) use the IS-LM framework to illustrate and discuss the impact of policy responses from both the government and central bank to the GFC and what this means for interest rates and economic activity. Remember to explain any changes you have made to the curves and/or any shift(s) you have undertaken.Part 2: Policy Analysis Presentation(2-minute recorded digital presentation)Consider the following list of possible government policy initiatives for the Australian economy. Choose ONE policy initiative and develop ONE slide either in support of OR against the policy chosen. Your slide is to be used in a digital presentation in which you will record arguments that expand upon the points raised in your slide that you speak to. Remember to consider both the short-term and long-term impacts stemming for the policy and how this may impact the overall economy and/or particular sectors. Your digital presentation needs to be produced using your preferred software like Zoom or MSTeams (where you can record a meeting that you are the only person attending with your single PowerPoint slide in presentation mode).

Bidusha · Accepted Answer

GLOBAL FINANCIAL CRISIS (GFC)
Table of Contents
Critical Event Analysis	3
Main Causes of the GFC	3
1. Exorbitant danger taking in a crafty macroeconomic environment	3
2. Banks and financial supporters have increased their purchasing power.	4
3. Rules, guideline and strategy	4
Policy Initiative	4
Lower interest rates	5
Australia and the GFC	5
Monetary execution that is somewhat vigorous	5
Policy response	6
References	7
Critical Event Analysis 
The global financial crisis (GFC) occurred between mid-2007 and mid-2009, putting tremendous strain on global financial industry sectors and banking foundations. During the Global Financial Crisis, a drop in the US real estate market triggered a monetary emergency that extended from the US to the rest of the globe via global monetary framework links. Many banks throughout the world have suffered massive losses and require government assistance to stay afloat. As the developed countries saw their most severe downturns since the Great Depression of the 1930s, a large number of people lost their jobs (Smith, 2020). Recuperation from the monetary emergency was additionally slower than in past downturns without a monetary emergency.
Main Causes of the GFC
An assortment of reasons describe the GFC and its force, as they do other monetary emergencies, and individuals are at present examining the overall significance of every component. Coming up next are probably the main perspectives: 
1. Exorbitant danger taking in a crafty macroeconomic environment 
In the years leading up to the Great Recession, financial circumstances in the United States and other countries were satisfactory. With modest rates of expansion, unemployment, and interest, financial progress remained reliable and persuasive. In this situation, property expenses skyrocket. Expectations that housing costs would continue to rise prompted buyers, notably in the United States, to rush to acquire and construct homes. Property developers and people in European countries (such as Iceland, Ireland, Spain, and other Eastern European countries) purchased excessively in light of near-term housing concerns (Reserve Bank Of Australia, 2021).
For a variety of reasons, banks and various moneylenders were ready to give constantly colossal measures of dangerous advances: 
• Individual banks battled to extend ever-greater measures of housing credits that radiated an impression of being incredibly useful at the time as a result of the extraordinary monetary situation. 
• Many moneylenders that offered home advances didn't totally reprieve down clients' ability to repay their commitments. This tended to the for the most part held conviction that ideal conditions will proceed.

Part 1: Critical Event Analysis Essay (1,000 word limit) What caused the Global Financial Crisis (GFC) and why did it spread? What impact did the GFC have on the economy in Australia? How did policy...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment