Evaluating Sustainable Macro-Policies in Emerging Markets

The Australian economy has experienced a high peak and troughs due to business cycles and rapid changes over the past five years. The government's inability to align interests and achieve international consensus on banking regulations poses a risk of future financial catastrophes. The property market, being a valuable investment option, has remained stable despite fluctuations in capitalization rates and long-term bond rates. The Reserve Bank of Australia's low interest rate since September 2016 has led to a falling economic growth rate and increased housing projects. Furthermore, the government's response to macroeconomic risks and international consensus on banking regulations is crucial for sustainable policy implementation.

Running head: Economics in Management
Economics in Management
2019

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Economics in Management
Economics in Management
Name of the Student
Name of the University
Author Note

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Introduction
Global financial markets give insight into financial security and management of a financial
investment. It covers various financial issues like financial products, strategies involved, the
growth of international markets, private banking, risk management, etc. Global financial markets
are moving towards greater financial stability (DeCenzo, 2016). Some nations are discontinuing
old or unconventional financial policies to come on par with the international economy.
Stock Market
A Stock Exchange is defined as an organized market that primarily focuses on the buying and
selling and relating with the financial instruments that are dependent on the securities and also be
interpreted and considers the stocks, bonds, options, along with the futures. It is defined as a
stock exchange that is related to the specific locations and also outlines the trades that are
completed. It is defined as a stock of a company which would be significantly be traded at these
exchanges, and it must also be listed, and it is significant to the listed, along with the company in
connection to the satisfy certain requirements. It would be connected to the not all stocks along
with the bought and sold with also be significant to the specific site. It would be stocks that
would be connected unlisted. It would be connected stocks as would trade that can connect with
the counter— and to the telephone or by computer (De Mooij, 2016).

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Figure ASX stock market
Source (De Mooij, 2016).
The stock markets are the most volatile and uncertain which gets impacted even with the slight
information or the turmoil in the market. It has been experienced with the indefinite personal
expectations that would be connected to the future movement of prices. Connecting to the stock
market prices are associated to be optimistic or pessimistic, that can connect to the government
perception in connection to the state of the economy (Fuchs, 2016). To relate with the challenge
and also to understand the in quantifying with the connecting with the factors it can also
influence information flow along with the investors' behavior, there should be a correlation to the
efficient indicator on connection to the investor sentiment is necessary. There can also be a
trading volume which can reflect how there can be a flow of transactions which would underpin
supply and demand factors that can be influencing and operating with the market in connection
to the moment.

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Figure ASX stock market
Source google.com
Overview of the Australian Stock Exchange
To determine how the Australian Securities Exchange (ASX) is also one of the dominant stock
exchange existing within Australia, that has also covered the 2,000 entities with have been listed
and made part of the market capitalization that is almost AUD 1.5 trillion, and it is also
considered to be the top ten equity markets among the global index and the indices in terms of
the market capitalization. It would be connected to the ASX lost its monopoly during the year of
the 31 October 2011 (De Mooij, 2016).

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Figure-: Overview of the ASX market over the years
Source (De Mooij, 2016).
As the government had introduced the Chi-X Australia, along with the pragmatic of the
Australian equity market that would remain low and during the ASX accounting it would also
cover approximately the 90% of on-market traded volume. During the ASX which has also been
connected and operating with the continuous electronic order-driven market, it has also included
the auctions that can open along with the close trading. This is just opposite in relation to the
New York Stock Exchange and NASDAQ, and as such there would be a no designated market
makers or specialists, along with the liquidity that has supplied solely in connection to the traders
that can also submit limit orders (De Mooij, 2016). As per the orders that are also awaiting
execution would be connected and also consolidated with the relation to the limit order book that
is considered to be transparent among the Australian economy it is also to trading independent
after the broker limit is removed from 2005. It is also subsequently been positioned as a limit
order connected to the bid or ask queue that is connected to the strict price-time priority rules. It
would so face a decreasing the order volume that would be related to the existing limit order that
can subsequently be having a no effect on priority, and it would also be increasing order volume

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that would help to generate an additional limit order, and it would be connected to the end of the
queue that can synchronize with the limit order book. As per the amendments in connection to
the limit price it can even relate to the limit order which can move with the lowest time priority
and also involve the new price level that can make it marketable. The ASX markets can undergo
several ups and downs during the day time (Davis, 2016).
Economics Theory & Analysis
The ASX is determined with the measures of productivity in connection with the labor
multifactor productivity. It would be determined with the production process, includes labor.
This would be examined with the uses, multifactor productivity that would connect from the
economy's level of technology. It would be the growth rate of multifactor productivity that
indicator is connected with the technological progress economy.
To determine how there would be multifactor productivity is related to the residual, i.e.
connecting with the change in output in connection to the accounting factors of production,
which is affected by the measurement error. To connect with the short-term movements
constitute with the multifactor productivity is connected to the business cycle, which also
includes the variance to the reflecting changes with the given technology. This is also one of the
longer term trends connected to the multifactor productivity which would help in underlying
technical progress.
The theory of economic modeling (the Swan-Solow model applied with the economic growth)
interprets how there would be a productivity growth in connection to the long term growth in per
capita incomes. There would be a productivity growth that would help to evaluate the long-run
growth rate in connection to the income per capita resulting in the zero. To connect and
understand how there would be a significant analysis with the increase in a country's saving (and/

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or investment) rate it would also help to examine the temporary increase in connection to the
growth rate.
To connect with the policy perspective, it is also outlined with the analysis with the productivity
growth is 'exogenous', i.e. such as the economic forces which determine the growth rate of
productivity and remains unexplained. To understand the recent developments in connection to
the growth theory determined with the specific factors connected to the rate of productivity
growth in the economy.
During the year 2018 equity markets in Australia got to rebound and repercussion of that is
equity valuations remained high. Due to the higher level of volatility in view of macroeconomic
risks etc, it strengthens the view holding sufficient cash is an essential part of the portfolio.
Australian interest rate is very low right from September 2016. The economic growth rate of the
Reserve Bank of Australia is falling and resulting in the falling of housing projects. Outside
funding pressure causes the interbank lending rates (Fuchs, 2016). Domestic borrowers are
facing higher interest rates. Most institutions have lifted variable mortgage rates. Reserve Bank
of Australia may not further decrease the rate of interest as the investor will not like to invest in
the Bank. Poor investment in Bank may cause deterioration of the economic status of the bank.
They will closely watch economic data to avoid any financial crisis.
Australian Economy
The government of a country's decision is to operate and also examine the open economy in
order to evaluate the global turbulent financial capital (Davis, 2016). It would be able to carry
out the financial capital carries that would be in connection to the monetary implications that

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would be subjective to the balance of payments. This also examines and would relate with the
approach to rendering the exposure to risks that are in connection to the international finance,
and also includes the political deterioration and with the regulatory changes and examine the
foreign exchange controls. It would also include the parameters to the legal uncertainties in
connection to the property rights along with the investments. Within the country, both the
individuals and groups would have to be proactive to contribute to keeping the economy stable
while facing the global financial system. Consumers international businesses that can interpret
and undertake consumption with the production, and investment (De Mooij, 2016). It is also
examined as the governments along with the intergovernmental bodies that can enact and also
purveyors in connection to the international trade along with the economic development, and
with the crisis management. To define with the regulatory bodies it also has to establish an
outline to the financial regulations along with the legal procedures, that can be connected to the
independent bodies which can facilitate with the industry supervision.
The Australian with the global financial system with the dependency on the greater stability and
it would help to outline with the governments that also have to deal with the option on the
differing regional or national needs. To connect with the nations that can outline systematically
that would help to determine how to discontinue unconventional monetary policies that would be
connected with the cultivate recovery, which would be related to the scope and scale. To
evaluate with the emerging market policymakers that can connect to the challenge and
dependency on the precision that would help to evaluate and implement with the sustainable
macroeconomic policies and related to the extraordinary market sensitivity which cannot be
provoking investors that can retreat their capital in connection to the stronger markets. It is
evident that the government has an' inability to align interests and also step up to achieve

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international consensus in connection to the banking regulation that would be dependent on the
risk of future and the global financial catastrophes (DeCenzo, 2016).
Discussion
The Australian economy has been consistently been experiencing a high peak and also faced
troughs with the connection to the business cycles and also rapid change last five years. During
the 1997 Australia economic growth has faced a certain upturn in connection to the recession
during the 96 years and subsequently they have also faced an issue of the composite indicators
and in relation to the retail trade, that has also been dwelling investment in relation to the
Australian share market valuations (Fuchs, 2016). This would be concurring and also be
connected to one another that can be demonstrated in anticipation of the effects and relation to
the upturn in economic growth.
To relate with the economic growth it also has to continuously been progressing from the year of
98-99 (Grant, 2018). It is also due to the weakening of the Australian dollar that has churned out
the rapid opening up and also connected to the increasing market share which has been held by
the Australian exports that run parallel with the world markets. It would be also associated with
the reduction to the Australian dollar and also can examine how there can be a trigger to decrease
with the prices of relation to the exports of foreign users. It was also with the reduction in the
Australian dollar’s value, that have resulted in the spur of the prices in connection to the exports
and also resultant with the foreign buyers, which can also result in the increasing demand in
connection to the products along with increasing in connection to the amount of money and
investments that has been done by the Australia residents. It would be a resultant approach with

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the aforementioned that can result in the increases economic growth along with the combination
to the high levels of employment and with the integration of consumer confidence (Hutchison,
2018).
The Australian economy also faced a turmoil with the economic growth which didn't experience
a long-lasting impact. With the economy peaking just in 2000 and after which the Australian
economy also faced turbulence or the sharp downturn due to the temporary episodes of the
recession which was faced during the middle of the year. It also resulted in the erratic behavior
and connected with the retail trade that can have the resultant impact of the millennium bug and
with the connection to the general consumption tax due to the GST. it would be causing a that
resulted in a temporary recession occurring around the middle of the year. This erratic behavior,
most pronounced in retail trade, can be explained by the effects of both the millennium bug and
the introduction of a general consumption tax in the form of the GST (Jandt, 2017).
Even with the Australian pre-GST economic slump, that was inevitably been seen during the
year of 2000, also saw a sudden rise with the Olympics games and there was a quick turnaround
in the Australian economy.
Property
The Australian property assets, is one of the valuable and the highly important form of the
investment, as the assets belong to the globally significant cities (Lipizzi, 2015). The Australian
residents and the global residents considered it to be an important element with the
diversification element in portfolios. It also remains in scope of the cautious in connection to the
Australian residential property values and allowed to be connected due to the softening within

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the Sydney and Melbourne markets that have included the restricted and also the granularity
distance between the different regions along with the significant property types which have
always remain important. Still, it is believed the government makes considerable efforts to make
the Australian commercial property values and also an attractive investment that can help to
generate with the income along with the longer-term capital growth (Kelly 2015).
Fluctuating property Australian Indices
Taken from Google
It is also connected to the capitalization rates (valuation rates) in connection to the commercial
property that has also been remained stabled and held the market last 5 years. it also results
relating to the spreads to long-term bond rates (and borrowing costs) which have also remained
prolong healthily. It is also attributed to the housing areas which also subsequently cover the
commercial real estate sector, that is also part of the retail, and it can also provide a detailed
connection to the inflation-linked cash flows. The Australian inflated houses prices are linked to
the CPI-linked leases, which have also progressed to the connection to the real income levels. It

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would not be ongoing concerns and it would be considered to be a potential weakness that can
remain discretionary consumer spending along it the significant impact on the rise of online
retail, It would also remain in connection to the preference that would be related to the exposed
and connected to the properties which would be focused on the non-discretionary retail spending,
along with the commercial assets that can follow the non-CBD locations which would also
benefit in connection to the proximity with the key infrastructure (Moro, 2016).
Figure-: Fluctuating Australian Property (2018)
The source is taken from Google
Conclusion
Due to the higher level of volatility in view of macroeconomic risks etc, it strengthens the view
holding sufficient cash is an essential part of the portfolio. Australian interest rate is very low
right from September 2016. The economic growth rate of the Reserve Bank of Australia is
falling and resulting in the falling of housing projects. Outside funding pressure causes the

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interbank lending rates (Pecorini, 2016). Domestic borrowers are facing higher interest rates.
Most institutions have lifted variable mortgage rates. Reserve Bank of Australia may not further
decrease the rate of interest as the investor will not like to invest in the Bank. Poor investment in
Bank may cause deterioration of the economic status of the bank. They will closely watch
economic data to avoid any financial crisis.
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