Policy Mix

[Nima2703]

Would we need to know any policy mix examples for the past year? thanks

[AznSkillZ]

yes there may be atleast one or more questions  relating to how budgetary policy and monetary policy might have affected the australian key economic goals

[MasterEds]

Just remember that the budgetary and monetary policies worked together in the past, now they are not because the ALP wants a surplus (contractionary) whilst the RBA wants to motivate spending as consumer sentiment is down due to EU crisis and situation in the US.

[dantan]

In particular I think it wouldn't be surprising to see a policy mix question referring to the current conflicting stance between MP and BP. So you need to be able to justify the govt. position in terms of BP and talk about how that allows for less restrictive MP etc.

[Nima2703]

I thought policy mix was AD and AS...not mp and bp demand side because thats both AD... under chapter 6 policy mix conflicts are only between AS and AD

[dantan]

I thought policy mix was AD and AS...not mp and bp demand side because thats both AD... under chapter 6 policy mix conflicts are only between AS and AD

I would disagree with you on that, because policy mix (I think anyway) encompasses the mix of both types of AD policy and AS policy. I mean, at current there is a clear conflict between MP and BP, one is contractionary (BP) and one is now evidently quite expansionary (MP).

Question 1.d. of VCAA 2010 also asked: "Examine the relationship that has existed between BP and MP in Australia over the past two years and its effect on the achievement of the economic goals of low inflation and strong and sustainable economic growth." Which is a policy mix question in essence because it's asking how two different types of policy has been used in the achievement of goals.

[Nima2703]

Okay thanks :p sorry just didn't realise

[dantan]

No worries! Glad to be of help

[Nima2703]

good luck today! whatcha think will be on the exam?

[LemonMeringue]

Good luck everyone!
Hopefully there will be questions about conflicting bp/mp, carbon trading scheme, deficit budget to surplus and it's impact and microeconomic reforms.

All the best for everyone! At least I've got Coldplay to look forward to after the exam. : )

[sadboy222]

i dont think there will be a question on the policy mix they have phased them out due to difficulty in marking

[SteliosV]

tHERE WAS m.p and b.p for ad in 2012