Australia vs. Greece
Australia has implemented more preferable economic policies than did Greece. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. In addition, the governmental support of the foreign investments on its natural resources and energy allowed the nation to play a role as a significant exporter of natural resources and energy in the international trade. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector.
Meanwhile, in connection with the cause of the the ongoing economic crisis in Greece, the Bank of Greece had underperformed in terms of its inaccurate statistics of the economic status while the government authority neither cared about them. The late conduct on the adjustment of the interest rate and other factors after the breakout of economic crisis ultimately did nothing but resulted in decline of public demand, which led to the lower purchasing power parity of the country. As a result, the real growth rate of Greece had gone down to minus 7%, when at the worst of the crisis.
I think that governmental intervention on the economy in certain scale is necessary for the economic stability. Meanwhile, it has to be regulated under prudent measure as not to be slack in the conduct of survey of the economy (considering Greece’s misconduct) and rational decisions which has to intrude private industry and commerce.
Meanwhile, in connection with the cause of the the ongoing economic crisis in Greece, the Bank of Greece had underperformed in terms of its inaccurate statistics of the economic status while the government authority neither cared about them. The late conduct on the adjustment of the interest rate and other factors after the breakout of economic crisis ultimately did nothing but resulted in decline of public demand, which led to the lower purchasing power parity of the country. As a result, the real growth rate of Greece had gone down to minus 7%, when at the worst of the crisis.
I think that governmental intervention on the economy in certain scale is necessary for the economic stability. Meanwhile, it has to be regulated under prudent measure as not to be slack in the conduct of survey of the economy (considering Greece’s misconduct) and rational decisions which has to intrude private industry and commerce.
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