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I would say it is more likely to worsen the cad, but probably not through the exports channel. In the short run it will have a greater impact on net exports, however I would imagine that in the long run this would dissipate and a lasting effect would exist on the net incomes account.

Perhaps you can draw it and post it. then I can take a look

Eco :?

Perhaps you could take a look at the RBA website and examine the movement in the cash rate over the last year.

A general alertness of what is going on is useful. I wouldn't say that involves reading a lot of newspapers but if you check a major news website daily and look out for any economics related articles, you should be more than fine.

I would like to make a distinction. Rising prices is not synonomous with inflation. For example the price of tickets to an AC/DC concert has gone up 100 fold since the 1970's, not because of inflation but because there is an increased demand for AC/DC tickets. We would not classify a price...

demand pull inflation, maybe also inflationary expectations and imported inflation

Economics = :headbang:

Before giving you an answer I would like to know why you want to know the links between labour market reform, infrastructure reform and inflation? it is not really something you should need to be doing. If you want to know what labour market and infrastructure reform is, I would suggest...

An 'inflation guage' would refer to some type of index that reflects the level of inflation within an economy. The most common known of these might be the consumer price index (CPI) which is the actual target measure inflation used by the reserve bank. However other measures such as the Producer...

Usually the best way to receive responses is to start the enquiry yourself. Posting a question is unlikely to be as effective as having a go yourself and asking for feedback. I would recommend you go to the RBA website and examine some of the time series stats available.

It depends on the situation. Inflation is really a macroeconomic issue so it is the fiscal outcome that will have an influence on inflation. Unfortunately because there can only be one outcome, the government cannot achieve multiple objectives at the same time. In a theoretical sense they...

I would suggest looking at some articles on the budget, or reading the budget papers yourself. Alternatively you will probably find many relevant measures in the thread dedicated to the budget. Biggest one would be the increase in the pension, but other measures such as the health insurance...

How about you have a go first and then people can make suggestions.

A recession will not usually increase inflation unless governments are unable to raise funds through taxation and resort to seigniorage in order to fund government outlays. Typically however recessions are assosciated with low inflation or possibly even deflation (notable cases include the...

Macro policies tend to look at the demand side of the economy, and micro policies deal with the supply side.

Yes but remember the GST is a tax and is not included in the CPI. So the price of bannanas may have increased by 10% as far as your wallet is concerned, however as far as the CPI is concerned only the ex-GST price is included. This is also true of input costs because firms claim GST credits on...

The first diagram should be upward sloping. Alternatively you could keep the original diagram as it was but have "supply of AUD" on the bottom diagram

I will make a few points in answer to your question. 1 - The GST is a tax. The CPI does not include consumption taxes when calculating the price of this hypothetical basket of goods and services. Subsequently the introduction of the GST should theoretically have no impact on the CPI. 2 -...

I reuploaded another one as I made a mistake in the first one.