Business Cycle Personal Journal
Personal Learning Journal 2 – written due end of week 10.
Refer to the Overview of the most recent Reserve Bank of Australia Monetary Statements. See www.rba.gov.au > publications>; as well as relevant key economic indicators from the Australian Bureau of Statistics (www.abs.gov.au); TO
Consider any developments in the economy in recent quarters by reviewing the minutes of the monetary policy meetings of the Reserve Bank Board (RBA minutes), as well as the trends in key economic indicators as published by ‘Australian Bureau of Statistics’ (ABS).
Pretend that a small business client has asked what you think will happen to “business cycle” and economic activity over the next 6-12 months. This client is an exporter of a unique product and has a significant fixed rate loan.
Based on your readings:
1. Decide which direction you think interest rates will move, or if you think they will remain the same (brief summary statement. minimum of 250 words). Clue – link reasoning back to their effect on GDP/activity.
2. Write a brief summary highlighting 3 KEY reasons for your belief of what stage of the “business cycle” you believe the economy to be at? (Minimum of 400 words).
Clue – link the reasons back to their effect on GDP; or their relationship with GDP. Discussion & theory in parts 1 & 2 should correlate/concur.
3. Explain to the client what impact this might have on their budget forecasts and how. (Minimum of 200 words).
Your written submission must be written in words you would actually use if emailing a client (please no colloquialism) and contain full sentences and well-constructed paragraphs.
Your oral submission will be guided by your teacher. It will likely be a “one-on-one” interview with your teacher/lecturer, where you will be questioned and asked to detail & elaborate on your written submission piece (on the PLJ2 topics).
Your teacher may direct you to make the oral submission a 5-10min presentation, either directly to them (teacher/lecturer); or in front of the classroom.
Each student should confirm with each individual teacher/lecturer, how they wish to conduct the ‘oral submission’ for week 11/12 online.