Risk of Economic Crisis in Australia

Economic crisis

1. Country experience downturn in economy by financial crisis.

2. Take form of depression or recession (Bech et. al., 2014).

3. Results in falling GDP, drying up of liquidity.

Types of economic crisis

Economic crisis in Australia

1. Facing global financial crisis resulting in slow growth of economy.

2 Growth in past financial year by 1.4%

3. Affected GDP, house consumption(De Goeij et. al., 2015).

Risk  of crisis in australia

1. Slow economic growth.

2. Rising unemployment

3. Housing cost increases.

4. Limited access to credit.

GDP growth

Impact on household consumption after financial crisis

Is Australia ready for next economic crisis?

1. Not ready for next financial crisis.

2. No proper plans prepared (Chua et. al., 2012).

3. Can use fiscal policy as used earlier.

4. This is because has stable economic growth and there is no expansion since last few years.

Conclusion

1. Australia got badly hit because of crisis.

2. Economy growth was very slow.

3. Impact on various factors.

Reference

1. Bech, M. L., Gambacorta, L., & Kharroubi, E. (2014). Monetary policy in a downturn: are financial crises special?. International Finance, 17(1), 99-119.
2. Chua, Y. L., Cheong, C. S., & Gould, G. (2012). The impact of mandatory IFRS adoption on accounting quality: Evidence from Australia. Journal of International accounting research, 11(1), 119-146.
3. De Goeij, M. C., Suhrcke, M., Toffolutti, V., van de Mheen, D., Schoenmakers, T. M., & Kunst, A. E. (2015). How economic crises affect alcohol consumption and alcohol-related health problems: a realist systematic review. Social Science & Medicine, 131, 131-146.