The US Economy vs.International Economy Research Paper

The US Economy vs.International Economy - Research Paper ExampleThe American central fix wants to keep its interest rate low (to almost zero) to spur the sparing but Mr. Hoenig thinks otherwise.In contrast, the Australian economy has not suffered as greatly as the US during recent financial crisis because its economy is a bit insulated from the global economy. In fact, its big four banks are trying to hide their profits because the economy did relatively well last year. In addition, the big four banks are suspected of using write up tricks to manage their earnings and show smaller profits than what they actually were (Potts, 2009, p. 1) because of possible political and social backlash. Moreover, the Australian authorities at its Reserve Bank are not planning to reduce its interest rates because the economy is doing better than expected. To put it another way, the need to reduce rates is not urgent because the ceding back was not as deep as it had originally feared. The Australia n economy has recovered well plenteous their banks raise interest rates they pay on client deposits (Potts, 2010, p. 1). Its economy is forecast to grow by 3.5% next year and its currency has appreciated 20% against the US dollar since middle of the year (Rogow & Glynn, 2010, p. 1). two economies are fully plugged to a global economy but Australia did not suffer from a housing crisis and demand for its resource exports is strong.Rogow, G. & Glynn, J. (2010, December 15). Australia Welcomes Oprah as Tourism Slumps. The Wall Street Journal. Retrieved from