MrWood's Economics News Archive
2008
November | 15/11/08 : Many of you will be visiting this site for the first time. This article will explain how to get the most out of your time here.Please note: Updates will now appear once each month until the start of the 2009 school year. |
 | 08/11/08 : That's it! The exam for the class of 2008 has now been completed, and you are one step closer to the end of Year 12. This week we will look at some of the questions that were examined. There might also be a few clues for the class of 2009! |
 | 01/11/08 : The final update for the Year 12 class of 2008! While you are sitting the final exam, you might like to refer to some current events. This week we will explore some of the events that made 2008 such a fascinating year to study Economics. |
October | 25/10/08 : Recent exams have asked students to discuss microeconomic reforms that have been implemented over the last few years. This is an area in which many people struggle. This article might help! |
 | 18/10/08 : To do well on the exam, you will need to know about the current policy mix. This week we will look at some of the macroeconomic policies that have been implemented since the election of the Rudd government. |
 | 11/10/08 : The third (and final) instalment in our series on current statistics. This week we will examine changes in supply side factors that have affected the Australian economy in 2008. |
 | 04/10/08 : Last week we looked at recent data relating to economic goals. This week, statistical movement in regards to demand side factors. Be forewarned - there is a lot of data here! |
September | 27/09/08 : One way to stand out on the final exam is to be able to include up to date statistics in your responses. This week, we will look at some of the information in relation to the goals that you studied in Unit 3. |
 | 20/09/08 : One of the main reasons that the Labor Party was elected was to change the industrial relations landscape of Australia. This week, some of the details of their Forward With Fairness laws were announced by Julia Gillard. |
 | 13/09/08 : Last week I challenged you to evaluate the role of the RBA in implementing monetary policy to achieve their goals. This is exactly the sort of question you should be able to answer for the final exam...here is a sample for you to assess! |
 | 06/09/08 : For the first time since 2001, this week the RBA acted to reduce the cash rate. You should know what prompted this change in the monetary policy stance, and you should also start thinking about whether or not this change was a good idea.... |
August | 30/08/08 : The Australian Prudential Regulatory Authority plays an important role in keeping the domestic financial sector stable. Given the current problems, it might be time to stop and find out what they think about the situation. |
 | 23/08/08 : The level of business confidence in the Australian economy provides us with some idea of what might happen in the future. All you need to know is the trend, and you can start to make predictions. |
 | 16/08/08 : National savings are important. We use this money to fund our growth. Without this, we become more dependent on savings which are accumulated by people in other countries. This is something that the government is keen to avoid.... |
 | 09/08/08 : Interactions in the economy are complex. An economist is a person who tries to make sense of these things, and see into the future. Maybe we can use these skills to try and predict what will happen to both the Australian dollar and interest rates |
 | 02/08/08 : This week, Starbucks announced that they will be closing over sixty stores in Australia, and over six hundred worldwide. This is significant - it tells us a lot about the way that major players see the global economy today. |
July | 26/07/08 : The sub-prime mortgage situation has dominated the global economy in 2008, and as a result you must make sure that you are able to discuss this issue on the final exam. There may not be a direct question, but there will be an opportunity to use it |
 | 19/07/08 : Emissions trading has been in the news all week, and I suspect that we will hear even more about it in the next few years. But what is it? How does it work? And what impact will it have? |
 | 12/07/08 : One of the most significant problems that an economy can face is a wage-price spiral. Many people believe that this is exactly where the Australian economy is headed right now.... |
 | 05/07/08 : Plastic bags are everywhere - Victorians alone use almost one billion of them every year. Most end up as landfill, others end up as rubbish on the street. For this reason, we need a strategy to reduce the number that we use. |
June | 28/06/08 : The situation in Zimbabwe is so drastic that it is almost impossible to believe. In this week's update we will explore some of the reasons for the problems, and the economic consequences. |
 | 21/06/08 : The price of crude oil is affected by both supply and demand factors. Given the changes that we have seen so far this year, this is a topic that you should be prepared to discuss on the final exam. |
 | 14/06/08 : The latest labour force statistics have just been published, and they seem to have taken some people by surprise. This will show you how the Economics you are learning can be applied in the real world. |
 | 07/06/08 : For many years we have been told that money can't buy happiness. This is known by economists as the Easterlin Paradox. New data is suggesting that this might not be true after all.... |
May | 31/05/08 : The Australian government has offered financial assistance to the people of China and Burma, as they are both suffering from extraordinary natural disasters at the moment. This means that it is appropriate to examine our commitment to foreign aid |
 | 24/05/08 : Microsoft wants to buy Yahoo!, and Google co-founder Larry Page isn't happy about it. Is Microsoft working to become a monopoly? And if they are, is it really such a bad thing? |
 | 17/05/08 : The federal Budget has now been handed down, and as a result we are now in a position to decide whether or not we like it! What was announced in the Budget this week? And which economic goals are being pursued? |
 | 10/05/08 : Each year in May, the federal treasurer will announce to the country their plans for the annual Budget. You will learn more about this policy in Unit 4; for now it is just important that you know what is happening on Tuesday night. |
 | 03/05/08 : The current account deficit is a complex economic measure. A question about the relationship between the CAD and the value of the Australian dollar is one of the most challenging that could appear on this year's exam. |
April | 26/04/08 : I am sure that you have all read about the 2020 Summit, which took place in Canberra last week. But did you also notice that Australia just got a lot bigger? Unfortunately, so did the most recent inflation figure! |
 | 19/04/08 : The Australian government has a detailed plan in place to deal with domestic inflation, but solving the issue of imported inflation is much more challenging. Now imagine what it must be like for people living in one of the world's poorest countrie |
 | 12/04/08 : The participation rate is much more than just an interesting statistic to study; it is one of the few variables that the government can manipulate to help in increasing our productive capacity. |
 | 05/04/08 : The honeymoon period for the new government is over, and they must now establish their credentials as economic managers. One item on the agenda is to ensure that there is strong competition in the Australian economy. |
March | 29/03/08 : The Australian Business Week program runs every year in Geelong. This is an extraordinary program that allows sixty very talented students to apply their Economic knowledge in a unique way. |
 | 22/03/08 : It is important that you are able to distinguish between some of the key words in Economics. For example, did you know that there is a huge difference between a change in your real wage and your nominal wage? |
 | 15/03/08 : Consumer confidence has been relatively high for many years, but recently there has been a change. The last time it was as low as it is today was in 1993. This could have a significant impact on our economy. |
 | 08/03/08 : Oil stocks are falling, while the demand for it is increasing. As a result, people are seeking out suitable substitutes. Believe it or not, this will result in much higher prices for the food that we eat. |
 | 01/03/08 : The Australian exchange rate is appreciating - one Australian dollar can now buy almost US$0.95. Applying the laws of supply and demand can help to explain this amazing situation. |
February | 23/02/08 : Choosing which story will receive my attention each week is often difficult. This week there was no contest - the IPL cricket auctions, which happened in India on February 20th, can teach us a lot about the basic concepts of Economics. |
 | 16/02/08 : This week the Australian government announced that the tax cuts promised before the last election will go ahead. What impact will this have on the Australian economy? |
 | 09/02/08 : This week, the Reserve Bank of Australia announced that the cash rate would be increased to 7.00%. Now that you are beginning to understand Economics, you will be able to explore the consequences of this change. |
 | 02/02/08 : The Chinese economy has been growing at a staggering pace ever since market based reforms were started in 1978. This has significant implications for the Australian economy, and therefore our standard of living. |
January | 25/01/08 : The sharemarket was up, and then it was down. And after that, it just kept on going down...until Wednesday, when it started going up again. What on Earth is going on? |
 | 01/01/08 : For the first time in almost two decades, economists are using the word recession in reference to the world economy. What does this mean? And how will it affect us? |
2007
December | 01/12/07 : The United Nations is more significant in our economic development than you might realise. For example, what are the Millennium Development Goals, and why are they so important?
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November | 09/11/07 : A review of the 2007 examination paper.
Please note: Updates will now appear once each month until the beginning of the 2008 school year. |
 | 02/11/07 : A summary of some of the events that made 2007 such a fascinating year in Economics, and a few exam tips thrown in as well! |
October | 26/10/07 : It is time to start making some predictions - what will you be asked about on the final exam? This week's update should give you a few clues! |
 | 19/10/07 : The role of the ACCC in the Australian economy was big news this week. As such, the Australian government's response to market power was put to the test. |
 | 12/10/07 : This is the second update this year about the participation rate. That should tell you how important this topic is, and how likely it is to appear on the final exam! |
 | 05/10/07 : You may have learned about cost inflation, demand inflation and imported inflation, but have you considered agflation? This term appeared in the newspaper this week, and it might help to explain a current problem. |
September | 28/09/07 : It would not surprise anyone if there is a question on this year's exam about the economic impact of the drought, and the government's response to it. Here are some thoughts on the issue. |
 | 21/09/07 : Many people will tell you that statistics are just a mathematical way of hiding a lie. Statistics can be misleading, unless you know what to look for.... |
 | 14/09/07 : The market for crude oil has been fascinating over the last few years. You can use this to learn about a lot of the key concepts in Economics. |
 | 07/09/07 : One of the most common terms in an Economics classroom is standard of living, and yet there is no obvious measure for the way in which this is assessed. |
August | 31/08/07 : You might have heard the term "commodities boom", but we aren't in a boom. We have also heard "rural recession", but we aren't in recession. So where are we in the business cycle? |
 | 24/08/07 : So you like Economics, but you aren't sure where you will end up working. Have you considered seeking employment in the virtual world? At least one person has! |
 | 17/08/07 : Many people will tell you that it is good to buy Australian made goods and services. But is their argument economically viable? |
 | 10/08/07 : For the first time in over ten years, the cash rate has increased to 6.5%. This significant change will affect both the economy and this year's election. |
 | 03/08/07 : With over $200 billion being collected in federal government revenue this year, taxation is something that we should all work to understand. You will learn some of the key terms here. |
July | 27/07/07 : Global markets have fallen this week. An understanding of the way in which overseas economic conditions can act as a demand factor will help you to explain why. (And also predict when it will happen again!) |
 | 20/07/07 : The Australian dollar has appreciated significantly over the last few months. Being able to explain why will really help you to stand out on the final exam. |
 | 13/07/07 : In September this year, Sydney will host the annual APEC Leaders Week. During this week, many of the world's most powerful people will be here to make important economic decisions that will affect all of us. |
 | 06/07/07 : The Australian Fair Pay Commission has handed down its decision for 2007, and the minimum wage is set to increase by around $10 per week. But is this enough...? |
June | 29/06/07 : Remember the Young Economist of the Year competition? The results are in! To find out who won, and to read the winning essay, just read this week's update. |
 | 22/06/07 : Many people believe that Australia is in the midst of a debt crisis. Young people in this country are taking on more and more debt, and not all of them can afford it. |
 | 15/06/07 : As you move from Unit 3 to Unit 4, you need to answer this question: Why do we allow government intervention in the Australian economy? Only when you know the answer can you stop to consider the policies. |
 | 08/06/07 : According to the newspapers, the unemployment rate has now fallen to 4.2%. Many are now predicting that interest rates will go up...will they? |
 | 01/06/07 : The government has made changes in this year's Budget which will affect income distribution in Australia. To understand the changes, you will need to appreciate the re-distribution process. |
May | 25/05/07 : One way to increase living standards is to increase efficiency. Many people believe that genetically modified crops will help us to achieve this goal. What do you think? |
 | 18/05/07 : Global warming is possibly the most pressing issue of our time. The mistakes of one generation must now be fixed by the next. That means that you will have to do something about it.... |
 | 11/05/07 : Last week we looked at how the budget process works in theory. This week we get to see what happened. What was announced in the budget? And what impact will these changes have on the economy? |
 | 04/05/07 : Each year in May the Australian treasurer will present the federal budget to parliament. This event will happen on May the 8th, and it will feature prominently in the newspapers all week. |
April | 27/04/07 : If the young man in the picture is looking to the future, he will need to ensure that everyone else in the photo is working. But how can we act to increase the participation rate? |
 | 20/04/07 : Some economists believe that Australia is operating as a two-tier economy. This has immediate economic consequences, including the dilemma of how to implement monetary policy. |
 | 13/04/07 : The value of the Australian dollar changes all the time, but recent changes have been significant. With figures this week showing that $1 AUD can buy you over $0.80 US, you need to ask yourself - Why? |
 | 06/04/07 : The Reserve Bank of Australia meets every month to make a decision about the cash rate in this country. After three changes in 2006, inflation is still above the preferred medium term average. |
March | 30/03/07 : The potential sale of uranium to India is in the news at the moment. As an emerging economist, you should think seriously about this issue - do you think it is a good idea? Can you justify your opinion? |
 | 23/03/07 : One of the most common questions being asked of economists at the moment is this: If economic growth was around 2% last year, why is the RBA acting to try and slow the economy down? |
 | 16/03/07 : As of June this year, the way in which the unemployment rate is calculated in Australia will change. There is no way that this can be in your textbook - you will need to learn it here! |
 | 09/03/07 : External instability has been a long term problem for Australia. Recently we have experienced a boom in commodity prices, and a simultaneous blowout in the current account deficit. How could this happen? |
 | 02/03/07 : Australians are not good at saving money. Money that has been saved is good for the individual, and also very important for the entire economy. |
February | 23/02/07 : In the late 1940s, many countries experienced a baby boom, and the ramifications for the economy have been dramatic. |
 | 16/02/07 : This was a very big week for the Australian share market. As a result, it was also a big week for investors! As you will need to learn how an index works, this is a good opportunity.... |
 | 09/02/07 : The Australian economy is moving through a period of relatively poor supply side conditions. One of the factors contributing to this situation is a lack of investment in infrastructure. |
 | 02/02/07 : Sometime in 2007, the Fair Pay Commission will hand down a ruling about youth wages. Some have argued that wages for young people should be increased, while others believe doing so will cause problems. |
January | 26/01/07 : Superannuation has had a significant effect on the Australian economy over the last two decades. Here you will see how an understanding of the Business Cycle explains why superannuation is such a good idea. |
 | 19/01/07 : Many people struggle when trying to make investment decisions. Here you will see that even a basic understanding of Economics can help! Working with supply and demand factors is an important first step. |
 | 01/01/07 : Is nuclear energy really the way of the future? Many countries around the world already use nuclear energy, but here in Australia we do not. That might change...depending on what you think. |