Role of Intermediaries in Financial Markets and Government Policy Impacts on Australian Financial Markets

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Financial market and Economic principles
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Financial market and Economic principles
Executive summary
The purpose of this report is to elaborate the role of the intermediaries in the financial markets;
assessing the changes and the impacts of the government and monetary policy on the Australian
financial markets. Also, it explains the measures taken by the Reserve Bank of Australia to
stabilize the economy over an overheating economic environment. Discuss the issues which may
influence the success of these measures. Furthermore, it illustrates the action that can be taken by
the government to alleviate this issue when there is a sudden downturn.

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Financial market and Economic principles
Contents
1.0 Introduction................................................................................................................................3
2.0 Measure uses by reversed bank of Australia to stabilize the economy.....................................4
1. Depoliticize the economy......................................................................................................4
2. Privatize the banks................................................................................................................4
3. Reappraise your currency.....................................................................................................4
3.0 The primary fiscal policy tool used by the government............................................................5
1. Taxation................................................................................................................................5
2. Spending................................................................................................................................5
4.0 Action to be taken by the government to improve a deteriorating economy.............................5
2. Improve infrastructures.........................................................................................................6
3. Amending advanced trade policy.........................................................................................6
6.0 Reference...................................................................................................................................7