Policy Brief Report: Australian GDP, Inflation and Recommendations

This policy brief examines the fluctuations of Gross Domestic Product (GDP) and inflation rates within the Australian economy. It begins with an executive summary that outlines the core issues, namely the impact of rising inflation on individuals and the economy. The report then provides recommendations, focusing on the implementation of monetary policy to control inflation by managing interest rates and increasing the supply of services and products. The economic rationale behind these recommendations is explained, highlighting the negative effects of high inflation on economic development and emphasizing the benefits of monetary policy in stabilizing GDP and maintaining low unemployment. Furthermore, the brief suggests fiscal policy options, such as tax adjustments and spending cuts, to reduce demand and improve economic budgets. The report concludes by referencing key sources and academic journals that support the analysis and recommendations provided.

POLICY BRIEF
REPORT

Table of Contents
Executive summary..........................................................................................................................3
Recommendation-............................................................................................................................3
Economic rationale..........................................................................................................................3
REFERENCES................................................................................................................................5
Book and Journals........................................................................................................................5

Executive summary
Policy brief is succinct summary of specific issues, policy choice to deal with problems
and some suggestions on the appropriate option. It is aimed at government policy makers as well
as others who is interested in implementation or influencing policy. The current reports is based
on policy brief, it has been explained the increase and decrease rate of gross domestic product
(GDP) in Australia and interpretate is systematic manner (Chubb and Watermeyer, 2017). Due to
inflation the price of products is increased that impact on individual within society. To resolve
the issues recommendation is required that help to bring opportunities for betterment. It has been
summarized the best recommendation based on impact of increased GDP or inflation upon
economy that is increase supplies of services and products.
Recommendation-
Gross domestic product, represents the economic growth and production that has large
impact on everyone within economy. As stated in part B inflation rate is higher that effect
economic development within Australia. To decrease the inflation it is highly recommended to
implement monetary policy which is appropriate in this situation. Monetary policy is the best
policy must adopt by monetary authority of nation that helps to controls interest rate payable
within limited period of time borrowing money. Furthermore, by increasing the supplies of
services and products and reduce money income it is possible to control inflation and aggregate
demand. Suggestion to implement fiscal policy which is highly beneficial and appropriate within
situation as increasing inflation.
Economic rationale
Increasing inflation rates is one of the main issue which has been identified in part A that
impact on economic development. High inflation is not good for organizations as well as
economy it impact on development and growth of nation. In order to control the inflation,
implementation of monitory policy is the best option that helps to managed the high inflation
within nation and also beneficial for economic growth (Mason and Vracheva, 2017). Delay
between the time of implementing policy is one of the issues that occurs while implementation of
monitory policy. Delays occur because information documenting state of economy is not
available immediately and then it takes a lot of time to accurately analyse. Inflation rate is higher
if the consumer prices is not changes, unchanged activity for previous three month leads highest
inflation. More over, if the policy is implement within nation the biggest issue has been raised

which influence the overall procedure that is inappropriate economic data. Fiscal policy is also
recommended, according to this policy government can maximized taxes and cut spending that
helps to improve budgets and reduce demand in economy.
Feasibility of monetary policy implementation is that it usually contribute to stable gross
domestic product as well as inflation to maintain and achieve low unemployment (Yoon, Kim
and Lee, 2014). In developed nations such as Australia this policy is generally formulated
separately from fiscal policy which refer to associated borrowing, government spending and
taxation. Fiscal policy also help to reduce the progress of aggregate demand will be more
distasteful as reducing inflation that lead to low output.

REFERENCES
Book and Journals
Chubb, J. and Watermeyer, R., 2017. Artifice or integrity in the marketization of research
impact? Investigating the moral economy of (pathways to) impact statements within
research funding proposals in the UK and Australia. Studies in Higher Education.
42(12). pp.2360-2372.
Mason, R.L. and Vracheva, V., 2017. The impact of inflation targeting on attracting foreign
direct investment. Journal of Applied Business and Economics. 19(4).
Yoon, M.J.W., Kim, M.J. and Lee, J., 2014. Impact of demographic changes on inflation and the
macroeconomy(No. 14-210). International Monetary Fund.