Essay: Critical Review of an Article

Running head: CRITICAL REVIEW OF AN ARTICLE
Critical Review of an Article
Name of the Student
Name of the University
Student ID

CRITICAL REVIEW OF AN ARTICLE1
Table of Contents
Introduction......................................................................................................................................2
Critical evaluation of the article......................................................................................................2
Conclusion.......................................................................................................................................4
Bibliography....................................................................................................................................5

CRITICAL REVIEW OF AN ARTICLE2
Introduction
This essay discusses a news article and critically reviews it. The article chosen was
published on Sydney Morning Herald on July 3, 2019. The article is related to the
macroeconomics as it speaks about using macroeconomic policies to boost the economy.
Australia is the country of concern in the article. The major discussion is based on the economic
policies of Reserve Bank of Australia (RBA) that are implemented to boost the economy of the
country. The essay aims to evaluate the article by analysing the macroeconomic policy measures
portrayed in it and discusses its relevance to the field of economics.
Critical evaluation of the article
It has been indicated in the article that the economy of Australia is going through
continuous economic slowdown phase. It is of utmost importance to bring out the economy of
the country from the existing adverse condition (Guttmann et al. 2019). In response to this RBA
has taken step to boost the economy and cut the interest rate by 0.25 points to 1 percent
(Bagshaw and Wright 2019). After reduction the interest rate becomes one of the lowest rate in
the history of central bank policies taken by any country in the world. The cut interest rate by
RBA has been done with the aim of increasing the wage growth and reducing the unemployment
rate of the country. However, according to the Governor of RBA, Dr. Philip Lowe the monetary
policy measure taken by RBA is not going to sufficient enough to boost the economy of the
country. It is evident from his statement- “not rely on monetary policy alone”. Dr. Lowe thus
requested Australian government to take fiscal policy measures and cut the tax rate to support the
monetary policy measure taken by RBA. As per the article, Dr. Lowe argued that it is necessary
to have both the monetary and fiscal policy into play to pull down the unemployment rate and
push the wage growth rate up. Due to low growth in wage people are consuming less and due to