ASSIGNMENT 2: INDEPENDENT STRUCTURED RESEARCH REPORT
Collect annual data for each year from 2000 to 2018 for five European countries and, Australia at http://data.worldbank.org/indicator. Under “all indicators” find and download data for the following macroeconomic variables. You must justify your country selection and must compare the macro trends with Australia.
Note: In order to download the data for a variable, click on the “DOWNLOAD DATA” tab on the right-hand corner of the webpage. You can save the data for each variable as an EXCEL FILE and save in a convenient location on your computer with the name of the variable.
Present the data for each variable in a table.
Tables and charts must be correctly titled, labelled and sourced
TASK 1: Data Collection and Analysis
Present the variables GDP growth rate, unemployment rate, interest rate and inflation rate each in a single chart for each of the selected countries (variable based country analysis). Similarly provide a chart for each of GDP, the unemployment rate, interest rate and the inflation rate for all the selected countries (country based variable analysis). Based on the charts you have prepared, compare and explain the effect of the major global economic crisis on the five countries.
Now prepare a chart for each country which shows its GDP, government expenditure and taxes. (If you have found government expenditure and tax as a share of GDP you will need to calculate the figures.) Compare the government’s share of the economy of each country. Compare the government budgetary position of each country (balanced budget, deficit or surplus) over the period (hint: Chapter 27 of the textbook). Discuss, how and why, these changes with the major global economic crisis.
TASK 2: Economic Policy Analysis (Domestic and Global)
Collect and present data from 2000 to 2018 for official cash rate of Australia and key interest rates for EURO area in an appropriate diagram. The key interest rates for the euro area set by the Governing Council are:
Official cash rates represent the cost of overnight loans between financial intermediaries within Australia and reflect nation’s stance on monetary policy while key interest rates, as specified above, reflect the European Union’s stand on the regional monetary policy responding to global issues.
Explain why the central banks of Australia and the European Union are currently employing such monetary policy actions? In your discussion, identify at least two current economy-wide issues that have justified their actions.