Graphs for Australia:

Pre Global Financial Crises:

Source: (Bank, GDP (constant 2010 US$), Retrived 2018) (Bank, Inflation, consumer prices

(annual %), Retrived 2018) (Bank, Real interest rate (%), Reterived 2018) (Bank, Unemployment,

total (% of total labor force) (national estimate), Reterived 2018)

At this point it could be seen that inflation has increased in 2006 and unemployment was going

down with uniformity, it could be further understood that after the year 2005 and before the year

2006 there is a point where GDP change, Inflation and interest rates, all were at equilibrium. In

2007 inflation was going at a price (Approx.) at which it increased in 2006.

Immediate After Global Financial Crises:

For this segment, we have selected three years, and these are 2008,2009 and 2010
Source: (Bank, GDP (constant 2010 US$), Retrived 2018) (Bank, Inflation, consumer prices

(annual %), Retrived 2018) (Bank, Real interest rate (%), Reterived 2018) (Bank, Unemployment,

total (% of total labor force) (national estimate), Reterived 2018)

For the Segment of Immediate After GFC; we have taken years 2008, 2009 and 2010, as the impact

of financial crises remained till 2010. It could be observed that real interest rates and GDP met in

2009 thus making an equilibrium, whereas the unemployment was found too high in all the three

segments. Government monetary policy had pushed interest rates to the lowest in all three

segments.

Five Years After GFC:

For this segment, we have chosen 2011,2012,2013,2014 and 2015.

Source: (Bank, GDP (constant 2010 US$), Retrived 2018) (Bank, Inflation, consumer prices

(annual %), Retrived 2018) (Bank, Real interest rate (%), Reterived 2018) (Bank, Unemployment,

total (% of total labor force) (national estimate), Reterived 2018)

The segment of five years after GDP was assumed to be started after 2010. It could be observed

that real interest rate, GDP, and inflation have equilibrium at somewhere between 2011 and 2012.

It could be further seen that at a point in 2013, the unemployment is less than the interest rate.
Graphs For South Korea:

Pre GFC:

Source: (Bank, GDP (constant 2010 US$), Retrived 2018) (Bank, Inflation, consumer prices

(annual %), Retrived 2018) (Bank, Real interest rate (%), Reterived 2018) (Bank, Unemployment,

total (% of total labor force) (national estimate), Reterived 2018)

It could be observed that in pre-GFC the interest rates were on a constant rise and unemployment

was steeply declining, the inflation was also falling except in 2007 where it rose me the little bit.

I could be expected that all variables were running towards a long-term equilibrium.

Immediate After GFC:

Source: (Bank, GDP (constant 2010 US$), Retrived 2018) (Bank, Inflation, consumer prices

(annual %), Retrived 2018) (Bank, Real interest rate (%), Reterived 2018) (Bank, Unemployment,

total (% of total labor force) (national estimate), Reterived 2018)

In just after the GFC we could observe that unemployment rate increased by one percent and

whereas the GDP has declined with an approx.. rate of two percent. This area shows a figure of

the recessionary gap .

Five Year After GFC:

Source: (Bank, GDP (constant 2010 US$), Retrived 2018) (Bank, Inflation, consumer prices

(annual %), Retrived 2018) (Bank, Real interest rate (%), Reterived 2018) (Bank, Unemployment,

total (% of total labor force) (national estimate), Reterived 2018)

It could be observed that in the after the period of GFC the interest rates have declined, the inflation

has also fallen steeply, but along such the unemployment has increased showing a sign of

inflationary gap.

FISCAL, MONETARY and NET EXPORTS for AUSTRALIA:

When considering Australian economy, the

budgetary policy before GFC shows sign of health as

unemployment was on the decline, the GDP constant

curve is seen getting high above the inflation rate and

inflation was declining. The monetary policy whose tool is the interest rate fell in 2006 but

increased in 2007, thus controlling the amount of credit in the economy, to avoid any inflationary
gap. Since the GDP constant rate was on the rise, it could be concluded that net exports were in

favor of the economy and since as stated before the monetary policy was towards contraction to

avoid any inflationary gap (Parking, 2007).

When considering the Australian Economy

Just after the GFC, it is seen that the monetary

policy was towards contraction as noticed

that the interest rate hit one percent in 2009

but was raised to more than six percent to control any inflation in which they succeeded. The

unemployment rate increased in 2009, and it could be highest in all the years under consideration.

The GDP constant rate has also decreased therefore showing that the net exports were unfavorable.

The fiscal policy is about same since the year just after the GFC shown a real decline in GDP

constant rate.

Australian economy after five years of GFC

shows that the monetary policy was still towards

contraction as the interest rate was still

increasing and they even crossed the

unemployment rate. The GDP constant rate is not consistent thus showing inconsistency in the net

exports. The inflation rate dropped in 2012 but gained momentum again in 2013, and afterward, it

again declined and again increased which also shows the fiscal policy was not leveling up with the

unemployment rate which was still on the rise.

FISCAL, MONETARY and NET EXPORTS for SOUTH KOREA:

The South Korean Economy's monetary policy

(Bernhard Seliger, Reterived 2018) was

contractionary as the interest rate was

increasing which showed results as the

unemployment was decreasing steeply. The GDP constant rate was growing thus displaying a sign

that the net exports were positive, i.e., they were favorable. The inflation has also decreased but

rose for less than one percent in 2007. All these indicators indicate that fiscal policy, monetary

policy, and net exports were favorable for the country.

Immediate after the GFC it is observed that GDP

constant rate, interest rate, and inflation all

decreased parallel as the fiscal policy shifted

towards expansionary against contractionary as it

was previously found. The net exports seem unfavorable, the GDP constant as reduced shows that

the saving was not converted into investment, therefore, the government has cut interest rate to

increase the investment proportion.

 The segment that is

five years after the

GFC monetary

policy shifted

towards contraction

as the interest rate

increased, inflation

was observed to be declining, the unemployment rate about the same which shows that this is the

unemployment which cannot be removed. Net exports seem to be favorable as the GDP constant

rate has increased.

POLICIES EVALUATION:

In South Korea:

This expansionary strategy (Kim, August 2010)

added to the recuperation of economy from

2009. Financial development rate changed to in

addition to (+0.2%) in the first quarter of 2008,

contrasted with the previous quarter, and kept up development slants steadily by recording 2.5%

in the second quarter and 3.2% in the second from last quarter.

The yearly commercial development rate achieved

in addition to figure (0.2%) in 2009, because of

auspicious strategy reactions and development

economics in developing the business sector.

Concerning assess strategy reactions, the

administration completed duty framework change to a course of diminishing taxation rate, keeping

in mind the end goal to support the economy. In 2008, (Christine Kim, SEPTEMBER 16, 2014)

the administration brought down the percentage of composite pay expense to till 2% bit by bit to

settle the employment of center and low level of pay and to fortify household utilization. Corporate

wage assesses rate was likewise brought down to animate speculation, and the question of expense

lessening was stretched out to help little and medium-sized organizations. (Soon-yang KIM, 12

October 2014)

Therefore, it could be concluded that the responses

made to global financial crises were stabilizing and

they even achieved results regardless of any adverse

consequences as the unemployment recorded don is

not fell into the category of unemployment due to

policy.
In Australia:

In Australia there exists substantial bipartisan help

for an economic, monetary arrangement (Austrlia,

Reterived 2018) that keeps the administration

obligation proportion stable over the business

cycle. The administration likewise merits adulate for beginning the procedure of financial

combination in those upcoming elections. (Weber, reterived 2018)

Spending a total of AUD 42bn ($31.3bn) which

was given out to families as AUD 900 ($670)

checks to those procuring not as much as AUD

100,000 ($74,430) every year, and AUD 950

($710) to families with school-age youngsters. The

money accompanied no quid pro quos, except the consolation that it ought to be invested at the

energy, as opposed to spare. (Glennen, January 10, 2017)

Therefore, it could be indicted that Australian economy took an expansionary policy to fight the

rescission and they had succeeded as the result above show.

References
Austrlia, R. B. (Reterived 2018). Interest Rate Decisions – 2009. https://www.rba.gov.au/monetary-
policy/int-rate-decisions/2009/.

Bank, W. (Reterived 2018). Real interest rate (%). https://data.worldbank.org/indicator/FR.INR.RINR.

Bank, W. (Reterived 2018). Unemployment, total (% of total labor force) (national estimate). Reterived
2018.

Bank, W. (Retrived 2018). GDP (constant 2010 US$).

https://data.worldbank.org/indicator/NY.GDP.MKTP.KD?locations=AU-KR.
Bank, W. (Retrived 2018). Inflation, consumer prices (annual %).
https://mail.google.com/mail/u/0/#search/imtia/1627a8d613168051.

Bernhard Seliger, H. S. (Reterived 2018). MONETARY AND EXCHANGE RATE POLICIES IN NORTH KOREA
Monetary and exchange rate policy in North Korea – a tentative appraisal.
https://www.researchgate.net/publication/267797068_MONETARY_AND_EXCHANGE_RATE_PO
LICIES_IN_NORTH_KOREA_Monetary_and_exchange_rate_policy_in_North_Korea_-
_a_tentative_appraisal.

Christine Kim, C. Y. (SEPTEMBER 16, 2014). South Korea could keep expansionary policy for years.
https://www.reuters.com/article/us-southkorea-economy-cenbank/south-korea-could-keep-
expansionary-policy-for-years-idUSKBN0HB00520140916.

Glennen, C. (January 10, 2017). Recession-proof Australia. https://www.worldfinance.com/special-

reports/recession-proof-australia.

Kim, H.-W. (August 2010). Macroeconomic Policies of Korea to Cope with the Crisis. Conference on
Global Economic Crisis: Impacts, Transmission, and Recovery , (p. 8).

Parking, M. (2007). In "Economics, Level I (pp. 307-308). CFA Program Curriculum 2.

Soon-yang KIM. (12 October 2014). South Korea’s Policy Responses to Global Economic Crisis. First
Middle East Conference on Global Business, Economics, Finance and Banking.
http://globalbizresearch.org/Dubai_Conference/pdf/pdf/D426.pdf.

Weber, E. J. (reterived 2018). AUSTRALIAN FISCAL POLICY IN THE AFTERMATH OF THE GLOBAL
FINANCIAL CRISIS. Business School University of Western Australia.