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Why Australia hasn't had a recession in 27 years

Original Content Publication Date: 02/08/2019

Summary

America's economy is on track to its longest period of growth on record, reaching one decade in July 2019. But that's nothing compared to Australia's 27-year run without a recession. Known as "the Lucky Country", Australia benefits from many different factors that have allowed them to avoid an economic collapse for as long as they have.

Key Points

  • Australia sits on a treasure trove of natural resources like iron, gas and coal
  • China's economy is exploding and many of the resources for China's growth are drawn from Australia
  • In 1983, Australia's dollar was moved onto a floating exchange rate
  • Australia immigration policy allows for many people to immigrate to Australia, increasing their GDP

Discussion Questions

  1. In what ways could America replicate Australia's economy to benefit our own?
  2. How does Australia's immigration policy help to grow their economy?
  3. What effect does the floating exchange rate have on the influence of money movement in Australia's economy? 

REFERENCE

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