Macroeconomic Performance Of Australia And USA: Analysis And Evaluation

Summary Statistics for Real GDP Growth Rates of Australia and USA

Real GDP growth of Australia and USA

	Column1	REAL GDP GROWTH RATE OF AUSTRALIA
	Mean	-0.07749512 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
	Standard Error	0.221400338
	Median	-0.081144834
	Mode	#N/A
	Standard Deviation	1.01458381
	Sample Variance	1.029380307
	Kurtosis	-0.008634789
	Skewness	0.038330901
	Range	4.079999908
	Minimum	-2.010083353
	Maximum	2.069916555
	Sum	-1.62739753
	Count	21
	Confidence Level (95.0%)	0.461833013

	Column1	REAL GDP GROWTH RATE OF USA
	Mean	-0.183529247
	Standard Error	0.378251666
	Median	-0.238821158
	Mode	#N/A
	Standard Deviation	1.774157575
	Sample Variance	3.1476351
	Kurtosis	3.477356076
	Skewness	1.019380258
	Range	8.423644805
	Minimum	-3.116194615
	Maximum	5.30745019
	Sum	-4.037643425
	Count	22
	Confidence Level (95.0%)	0.786617401

 

Figure 1Relationship between real GDP and inflation

The table above shows the summary statistics of the real gross domestic growth rate of United States of America and Australia. As the table shows that the value of the standard deviation is greater than mean, the value is positively skewed in nature. The graph of the United states of America shows the relation between inflation and real gross domestic product. It shows that when the gross domestic product rises, the inflation rate also rises and when it declines the other variable also declines. The maximum growth of real GDP in case of USA was 5 percent and the minimum were. on the other hand, the maximum growth of real GDP of Australia was 2 and the minimum was -2. The graph showing the growth of real GDP and inflation growth in Australia shows that they fluctuate a lot. The rate of inflation was minimum in the year 1997 and for USA the inflation was lowest in the year 2009.

	Column1	INFLATION RATE USA
	Mean	2.265611
	Standard Error	0.229945
	Median	2.33769
	Mode	#N/A
	Standard Deviation	1.05374
	Sample Variance	1.110369
	Kurtosis	0.925325
	Skewness	-0.96449
	Range	4.194647
	Minimum	-0.35555
	Maximum	3.8391
	Sum	47.57783
	Count	21
	Confidence Level (95.0%)	0.479657

Column1	INFLATION RATE OF AUSTRALIA
Mean	2.660028
Standard Error	0.258969
Median	2.615385
Mode	#N/A
Standard Deviation	1.186744
Sample Variance	1.408362
Kurtosis	-0.29508
Skewness	-0.01036
Range	4.402879
Minimum	0.224888
Maximum	4.627767
Sum	55.86059
Count	21
Confidence Level (95.0%)	0.540199
Rate on Unemployment in Australia and USA: summary statistics
Column1	UNEMPLOYMENT RATE OF AUSTRALIA
Mean	6.089523792
Standard Error	0.280750247
Median	5.929999828
Mode	#N/A
Standard Deviation	1.286559258
Sample Variance	1.655234724
Kurtosis	-0.372278321
Skewness	0.684467226
Range	4.28000021
Minimum	4.230000019
Maximum	8.510000229
Sum	127.8799996
Count	21
Confidence Level (95.0%)	0.585634753
	Column1	UNEMPLOYMENT RATE OF USA
	Mean	5.977142868
	Standard Error	0.367830277
	Median	5.53000021
	Mode	5.78000021
	Standard Deviation	1.685610087
	Sample Variance	2.841281364
	Kurtosis	0.131848224
	Skewness	1.109018864
	Range	5.640000105
	Minimum	3.99000001
	Maximum	9.630000114
	Sum	125.5200002
	Count	21
	Confidence Level (95.0%)	0.767280512

 

Figure 2 Relationship between real GDP and unemployment

The above summary statistics shows the values for both USA and Australia. Both the values are being positively skewed for both the countries. The graph above shows the relationship between the real gross domestic product and rate of unemployment. The gross domestic was product was minimum in the year 2009 for USA and for Australia it was minimum in the year 2001. The values of real gross domestic product fluctuated a lot unlike the values for unemployment.

Column1	NX OF AUSTRALIA
Mean	-1.166077721
Standard Error	0.244954835
Median	-1.298144186
Mode	#N/A
Standard Deviation	1.122524075
Sample Variance	1.260060298
Kurtosis	-1.170943089
Skewness	0.203812415
Range	3.711753595
Minimum	-2.744010975
Maximum	0.96774262
Sum	-24.48763215
Count	21
Confidence Level (95.0%)	0.510966833

Column1	NX OF AUSTRALIA
Mean	-1.166077721
Standard Error	0.244954835
Median	-1.298144186
Mode	#N/A
Standard Deviation	1.122524075
Sample Variance	1.260060298
Kurtosis	-1.170943089
Skewness	0.203812415
Range	3.711753595
Minimum	-2.744010975
Maximum	0.96774262
Sum	-24.48763215
Count	21
Confidence Level (95.0%)	0.510966833

The value above shows the summary statistics for Australia as well as for united states of America. The value of the net exports remained negative for both the countries since imports had been more than exports. For most of the time the countries known to have imported large amount of goods than exports.

	Column1	CASH RATE FOR AUSTRALIA
	Mean	4.738095
	Standard Error	0.313618
	Median	4.75
	Mode	4.75
	Standard Deviation	1.437176
	Sample Variance	2.065476
	Kurtosis	-0.26819
	Skewness	-0.19797
	Range	5.5
	Minimum	2
	Maximum	7.5
	Sum	99.5
	Count	21
	Confidence Level (95.0%)	0.654195

	Column1	INTEREST RATE OF USA
	Mean	2.559524
	Standard Error	0.52638
	Median	1.82
	Mode	0.16
	Standard Deviation	2.412176
	Sample Variance	5.818595
	Kurtosis	-1.79413
	Skewness	0.271431
	Range	6.33
	Minimum	0.07
	Maximum	6.4
	Sum	53.75
	Count	21
	Confidence Level (95.0%)	1.09801

 

Figure 3 Relationship between real GDP and interest rate

The graph above shows the relationship between the cash rate of Australia and the growth rate of real GDP. The second graph shows the relationship between the real gross domestic product and the rate of interest of USA. The value of the interest rate went down and was stable from 2009 onwards in case of United States of America. On the other hand, the cash rate had been the highest 2006 and 2007 in case of Australia.

Exchange rate of Australia and USA.: summary statistics

Column1 Exchange rate OF AUSTRALIA   Mean 0.770531 Standard Error 0.009618 Median 0.7615 Mode 0.7389 Standard Deviation 0.15237 Sample Variance 0.023217 Kurtosis -0.70266 Skewness 0.211558 Range 0.6064 Minimum 0.489 Maximum 1.0954 Sum 193.4033 Count 251 Confidence Level (95.0%) 0.018942
	Column1	EXCHANGE RATE OF USA
	Mean	1.350850517
	Standard Error	0.017442062
	Median	1.313197636
	Mode	1.353363107
	Standard Deviation	0.276334229
	Sample Variance	0.076360606
	Kurtosis	-0.335258987
	Skewness	0.564650156
	Range	1.132081248
	Minimum	0.912908527
	Maximum	2.044989775
	Sum	339.0634799
	Count	251
	Confidence Level (95.0%)	0.034352113

 

Figure 4 Relationship between real GDP and exchange rate

The graph above shows that the value of the exchange rate had fluctuated a lot. The value of the mean of the exchange rate for the united states was one the value of mode was similar to that which suggests that exchange rate was one for most of the time. The value of the standard deviation is also less than one with negative kurtosis. The exchange rate of Australia shows that it will be having negative kurtosis and positive skewness with the value of mean less than one.

Pairwise Graphs of Macroeconomic Indicators

The policies of the government which influences the  growth of the economy are number one the monetary policy and number two the fiscal policies.  For the monetary policies when there will be a change in the rate of interest, at that point of time the rates will be affecting the money supply. For increasing the spending in the economy by encouraging the economic growth, the government is known to lose the rate of interest. The government will be lowering the rate of interest for the rise in the money supply which can also lead to inflation.  In case when the economy is growing it can result to huge amount of inflation. Although low supply of money automatically discourages spending. In order to determine the monetary policy one of the main duties of the Reserve Bank of Australia is to maintain price stability and full employment.  The Reserve Bank of Australia also will be achieving the inflation target and keeping the  inflation around 2 to 3 percent on average. For Australia, the monetary policy is mostly about setting the official rate of interest for the nation. The interest rate in Australia is mostly said to be the cash rate. The cash rate will be affecting the rate of interest in the economy which will also influence the microeconomic variables of the economy. one of the main aims of the monetary policy of Australia is stabilizing the Australian currency along with maintenance of full employment. The welfare and economic prosperity of Australia are also maintained through this. Although the various tools of the monetary policy usually comprise of the open market operations, reserve requirements and the discount rate. The central bank of America which is also the Federal Reserves states that the monetary policy will be affecting the amount of money and credit in American economy. The fiscal policies are known as the spending by the government along with the various other tax policies that will influence the macroeconomic conditions that will be including inflation rate, economic growth aggregate demand and employment. The objectives of the fiscal policy are supplying the public goods which contributes to the betterment of the population. This is also known to stabilize the cyclical fluctuations in the economy.  Therefore, it can be stated that the budget is one of the main tools in order to achieve this objective and for this reason fiscal policy will be one of the main tools.  In United States of America, the fiscal policy is known to be directed by the legislative and the executive branches. For executive branches the president decides the main instruments. The government in the united states need to spend a lot of money for affecting the growth. At one particular period of time the national debt is known to be more than $1 billion. For Australia, the monetary policy is mostly about setting the official rate of interest for the nation. The interest rate in case if Australia is mostly said to be the cash rate. The cash rate will be affecting the rate of interest in the economy which will also influence the microeconomic variables of the economy. one of the main aims of the monetary policy of Australia is stabilizing the Australian currency along with maintenance of full employment. The welfare and economic prosperity of Australia are also minted through this. Although the monetary policy of the United states of America comprises of the various actions of the Federal Reserves and communications. The fiscal policy instruments are quite effective for poverty reduction and also for promoting the living standards of community. The fiscal policies are mainly used for stabilization of the economy over the course of the business cycle. In case of any kind of variation in the tax composition of the government, it will be affecting the macroeconomic distributions like those of savings, income distributions and the various level of the economic activity which the aggregate demand shows. There is presence of three different types of fiscal policies those are the neutral fiscal policy, contractionary fiscal policy and the expansionary fiscal policy. On the other hand, monetary polices can also be contractionary in nature or expansionary. When the contractionary fiscal policies take place the deficit spending of the government are known to lower than usual. Although, in cases when the government spending will be above the tax revenue there will be result of expansionary fiscal policy. The neutral fiscal policy is known to take place will there be absence of any kind of boom or recession.

Rate of Inflation of Australia and USA: Summary Statistics

The graphs above shows that there is a presence of inverse relationship between the growth of the gross domestic product and the inflation rate for the first few years. The data which have been collected from world bank shows that rate of inflation have decreased from the year 1995 for the four years, however, it again started increasing. The rate of inflation in case of the United States of America were known to be around 2 to 3 percent in case of most of the years. However, in 2009, the value went to negative. The value of the real gross domestic product was known to be three to four percent all over the years. On the other hand, it went down in the year 2008.  The summary statistics which had been found in the table above shows in case of the unemployment rate, it was found to be eight percent back in the year of 1995. It started to decline and reached the lowest in the year 2008 where the rate of unemployment reached the lowest. For the net exports and the value of the net imports the websites of the world bank shows that the imports are known to be higher while comparing with the exports. The exports are known to be quite high in 2009. The imports are known to be high also in 2001. The value of the net exports is negative all throughout the year. Although in the year 2009 and in 2001, the exports have been higher than the imports. The Australian economy have been experiencing a favourite global conditions where there will be presence of strong domestic demand when there will be growth in the population. The presence of the global uncertainty along with huge debt can also weaken the prospect of the growth.  The recent growth of the economy is known to be driven by the household consumption along with the government spending.  The continuous growth of the population had made the government to increase their spending on transport along with the various other infrastructures in case of New South Wales and also for places like Victoria.  There will be tightening of the monetary policies which will be affecting the  global market of China. China is also known to one of the trading partners in Australia. The growth of the output is known to be moderate in nature in the coming years as the capacity constraints can be tightening which can lead to slow growth in the market of exports.  The households will also not be willing to draw down savings in general. When the summary statistics of the cash rate in case of Australia and the  interest rate in case of the United States of America had been found, it showed that there will be presence of negative kurtosis. The maximum amount of the cash rate is known to be more than seven percent and that of the minimum was at 2 percent. In case of measurement the American interest rate was known to be quite low. The standards error was known to be at 0.5 and the value of the variance had been at six percent. Where the value of median and mode was around one. The value of the standard deviation had been also found to be one in case of mean and median. The value of the variance was very low around 0.2 where the maximum rate of exchange was one and the minimum was found to be zero. As the value of the standard error had been found to be at 0.5 the cash rate of Australia is found to be higher than the rate of interest of the United States.

Conclusion

The monetary policy of the United states of America comprises of the various actions of the Federal Reserves and communications. It will also help to promote the maximum employment, long term interest rate and stable prices.  There are various goals in the economy that are instructed by the congress to the Federal Reserves which are generally followed. The Australian economy will also be experiencing tighter financing conditions along with sluggish growth which will be squeezing the consumers spending.  Therefore in the coming years,  there will be a huge growth in the Australian economy.

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