Tag Archives: Government

Government and Markets

Economy Surrounded

The unemployment shark is back attacking the economy.It is hurting the very essence of the Australian system. Australian economy has been robust and riding the success wave. But the latest quarter has thrown up new challenges.Inflation is increasing due to destruction of food crops due to global climate changes.

New budgets and economic packages can have a significant effect on the behavior and outcome of markets. Not only in response to government packages, but also reacting in real time as analysts try to predict how certain events will affect the outlook of their organisations. This is where the economic machine fits alongside geo-political influences as the relationship between nations, in whatever sense, is crucial to the performance of individual markets. And this is where an equilibrium must be found between politics and economics, so the markets can behave in ways conducive to business. Perhaps this is why when a situation such as Ukraine’s happens, nations are slow to respond so they don’t upset power balances too much. The mixture of a new budget for us, the crisis in eastern Europe and unstable financial systems in Asia, mean equilibrium must be found. However, power balances are all too hard to control. Whilst economies, with their shares and stocks fluctuating, governments want the best for their countries which often undermines the interests of big corporations.

The power balance is shifting and the need of the hour is policy revision. New policies will act as the Noah for the Australian economy. It will drive it forward to success. Asia is also picking up the pace after an year of slack. So, the things look bright but edgy,