World Wars I and II Research Paper - 2200 Words

World Wars I and II (Research Paper Sample) Content: World Wars I and IINameInstitutionWorld Wars I and IIThe First World War, which was fought from 1914 to 1918, and the Second World War, which was fought from 1939 to 1945, are the most lethal and annihilating wars that have ever been fought in the history of mankind. Despite the two wars being fought on two different occasions in history, they both involved military alliances between different countries. In the First World War for instance, there was Triple Entebbe incorporating Britain, France and Russia on one side. On the other side there was the Central power which was comprised of Germany, Italy and Austria-Hungary. In the Second World War, there was the Allies on one side and the Axis on the other side. Thus, there are a myriad of differences and similarities characterizing the two wars. This paper compares and contrasts the two wars with regards to their origins.The First World WarThe First World War began on July 28, 1914 and came to an end on November 11, 191 8. The war was majorly fought in Europe and it incorporated the worlds greatest powers which had formed two major alliances opposing each other. On one hand, there was the Allies which was based on the Triple Entebbe of the United Kingdom, Russia and France (Dowswell, Brocklehurst, and Brook 57-59). On the other hand, there was the Central powers which consisted of the Tipple Alliance of Germany, Italy and Austria-Hungary. Even so, the alliances were not inclined to the six countries exclusively. With time, more and more nations joined the war expanding the alliances even further. Also, the alliances reorganized themselves as time went by. In the final analysis, there war attracted over 20 million soldiers across the world with Europeans constituting a larger percentage (Duffy).The origins of this war can be attributed to a myriad of both long-term and short-term causes in the world history. As such, the long-term factors include a variety of conflicts and hostilities that had marre d the European nations prior to the war. This includes the imperialist foreign polices that had dominated the European great powers including the Russian empire, the French Republic, the Austro-Hungarian empire, the British Empire as well as the Italy. However, the most immediate cause of the war was the assassination of Archduke Franz Ferdinand, who was an heir to the Austria-Hungary throne. According to Duffy, the assassination occurred on June 28, 1914. Following this tragic assassination, a series of wars were triggered. To begin with, there was a Habsburg ultimatum against Serbia. Consequently, the alliances which had been established earlier on were greatly invoked. Thus, within the next few weeks, the worlds major powers were at war with each other. This occurred in an unprecedented sequence. Apparently, one thing led to the other.For instance, in July 1914, Austria-Hungary invaded Serbia. A few weeks later, Germany invaded Belgium, France and Luxembourg. This prompted Russia to attack Germany. Also, the Russians attacked Austria-Hungary. Other forces joined the war. For instance, in late 1914, the Ottoman Empire joined the war. In 1915, Bulgaria and Italy also followed suit and were later joined by Romania.Meanwhile, there was a revolution in Russia in October 1917 following the collapse of the Russian empire. This compelled Russia to withdraw from the war. Ultimately, the United States was forced to enter the war in 1918, following a German offensive. This empowered the Allies who successfully launched a series of attacks on German allies. At the same time, German was experiencing hurdles with revolutionaries in its territory. Thus, on November 11, they agreed to end the war, marking the victory of the allies.The aftermaths of the war were adverse. It is estimated that over 9 million combatants were killed during the war. Several civilians in various countries were also killed. Also, there was the collapse of several empires. For instance, by the end of the war, Germany, Austria-Hungary, Russia, as well as the Ottoman empires collapsed totally. This facilitated the redrawing of the European map. Also, the end of the First World War saw the need for world peace. Thus, the League of Nations was established so as to prevent the occurrence of any possible wars in future.Be that as it may, the breakup and ultimate collapse of various European empires, coupled with the problems surrounding the Treaty of Versailles became the major contributors to the onset if the second world war (Henig).The Second World WarFollowing the defeat of the Central powers in the First World War, the European political map was significantly altered. The Allies, who had emerged victorious, gained more territories at the expense of the Central powers. Thus, new states were created from the collapsed empires of Russia and Ottoman.As a result of the Treaty of Versailles, Germany lost a significant part of its home territories as well as its overseas territories . In addition, German was prohibited from annexing other states and a series of reparations were imposed against it. The treaty also placed a limit on the size and capacity of Germanys military forces.Meanwhile, following the dissolution of the German Empire as a result of the German Revolution, there was the formation of a Weimer Republic which was a democratic government. In Italy, the Italians were angered by the failure by France and Britain to keep eth promise of securing Italian entrance into the war as had been stipulated in the peace settlement. Thus, the period between 1922 up to 1925 saw Benito Mussolini under the Fascist Movement, seize power in Italy (Dowswell, Brocklehurst, and Brook 112). He established a totalitarian agenda which abolished democracy in Italy and repressed the incumbent socialism. In addition, Mussolini adopted a very aggressive foreign policy which was directed towards forcefully making Italy a world power.This was also the case in Germany where Adolf Hitler through the Nazi party, strived to institute a fascist government as well. His endeavors were boosted by the onset of the Great Depression which bolstered domestic support for the Nazi. Consequently, Hitler was appointed the Chancellor of Germany in 1933, whereby he established a totalitarian single- state party under the leadership of the Nazis. Hitler embarked on a massive rearmament campaign thereby repudiating the Treaty of Versailles. France allowed Italy to take over Ethiopia, a territory that had been desired by Italy over a long period.In China, the Kuomintang Party commenced a unification campaign in opposition to the regional warlords (Keegan 311). The aftermath of the unification campaign was a prolonged civil war against the communist allies. The Japanese empire intruded Chinese affairs by invading the Manchuria. This prompted China to seek help from the League of Nation. As a result, Japan pulled out of the League of Nations following its condemnation for invadi ng Manchuria. Consequently, China and Japan were then involved into a series of warsThere was a rush to form alliances by several European powers. For instance, Italy, France and the United Kingdom allied together to form the Stresa Front. Conversely, the United States enacted the Neutrality Act. Later on in 1936, German and Italy formed established the Rome-Berlin Axis. This was preceded by the signing of the Anti-Comintern Pact by Germany and Japan and later on Italy (Keegan 316). Eventually, there emerged two great opposing military powers. On one hand there was Allies whereas on the other hand there was the Axis.As much as Japan and China were already involved in a was in 1937, the onset of the second world war transpired on September 1, 1939 following the invasion of Poland by Germany. According to Beamish (32), this prompted France and many other countries of the British Empire to declare war on Germany. With the use of several treaties and campaigns, Germany managed to conque red and subdue several territories of its neighbors between 1939 and 1941.Britain allied with other commonwealth countries and perpetuated the fight against the Axis. The European Axis invaded the Soviet Union in 1941. Meanwhile, Japan conquered most countries in the West Pacific. However, it lost a series of battles, while the European Axis soldiers were also defeated in the North African battle. A series of other defeats against Germany followed. Ultimately, the war in Europe came to a halt through the capturing of the Berlin by the Polish and Soviet soldiers. Dowswell, Brocklehurst, and Brook (57), recorded that Germany surrendered unconditionally on May 8, 1945. Furthermore, following the defeat in the war in Asia, Japan surrendered on August 15, 1945. Thus, the termination of the war marked a total victory of the Allies over the Axis.Despite the many differences sustained in the above analysis, it is apparent that the First World War and the Second World War there a variety of similarities and differences that are evidence with regards to their origins.With reference to similarities, it is apparent that both wars were to an extent invoked by Germans ambitions. This is attributed by the desire by German to control E...

Ancient Greek Perception of War, Role of Women and...

In the Iliad, the oldest and greatest of the Greek epics, Homer tells of the wars fought between the Greeks and the Trojans. Much of this books main focus takes place during the Homeric period in which the Trojan War began. In a pre industrial society, Homer describes the way mortals and immortals sought their existence throughout the Trojan War. Homers style of writing in Iliad enables a modern reader to perceive how the Ancient Greeks thought of warfare, of religion, and of the role of women and children. The Helladic Greeks valued fighting as a way to settle disputes. There was a significant degree of religious activity that took place during the Trojan War. Homer also allows a modern reader to grasp an idea of the role†¦show more content†¦It was Menelaus turn now, and as he rose I his bronze he prayed to Zeus. (Homer 61) Around the Homeric period, it was typical for Helladic warriors to fight in a gruesome manner. In the following passage, an atrocious fight bet ween two warriors, Meges and pedaeus, enables a modern reader to grasp a sense the warriors extreme brutality. Now Meges got close enough to him to send his spear through the tendon at the back of his neck and on into his mouth, cutting away the tongue at its root. He fell into the dust, his teeth clenched on cold bronze. (Homer 85) This is the following remark made by Diomedes, after being painfully wounded by an arrow. Son of Capaneus, get down from the car and pull this arrow out of my shoulder. (Homer 86) Not only did the Helladic warriors value fighting as a way to settle disputes, they also valued the intervening of Helladic gods and goddesses. Numerous religious activities takes place in Homers Iliad. For example, when Menelaus comes close to killing Paris in a duel, Aphrodite, a goddess whos in favor of the Trojans, saves Paris by whisking Paris away from the fight. But Aphrodite whisked Paris away with the slight of a goddess, enveloping him in mist, and lofted him into the incensed air of his vaulted bedroom. Then she went for Helen, and found her in a crowd of Trojan women high on the tower. (Homer 62) After Aphrodite whisks Paris away from the duel,Show MoreRelatedGreek Mythology8088 Words   |  33 PagesGreek  Mythology   I   INTRODUCTION   Temple  of  Apollo  at  Didyma   The  Greeks  built  the  Temple  of  Apollo  at  Didyma,  Turkey  (about  300  bc).  The  temple  supposedly  housed  an  oracle   who  foretold  the  future  to  those  seeking  knowledge.  The  predictions  of  the  oracles,  delivered  in  the  form  of  riddles,   often  brought  unexpected  results  to  the  seeker.  With  Ionic  columns  reaching  19.5  m  (64  ft)  high,  these  ruins   suggest  the  former  grandeur  of  the  ancient  temple.   Bernard  Cox/Bridgeman  Art  Library,  London/New  York   Read More Destiny, Fate and Free Will in Homers Odyssey Essay2299 Words   |  10 Pagesof his or her destiny, every step of the way.   Who is to say which viewpoint is false?   Every culture has a unique perception of the role of fate in our lives, and no group has the right answer, simply a d ifferent answer.   Taking into consideration the views of other cultures can help an individual refine his personal viewpoint on this inconceivable subject.   The ancient Greeks were mainly concerned with the relationship between fate and free will.   This concern weaves in and out of the culturesRead MoreCleopatr The Ruler Behind The Myth3455 Words   |  14 PagesJones claims Cleopatra was a chameleon in the skin of an Egyptian Pharaoh. 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Nursing Ethics and Malpractice - 3247 Words

INTRODUCTION In every nurses career, the nurse is faced with many legal or ethical dilemmas. One of the professional competencies for nursing states that nurses should integrate knowledge of ethical and legal aspects of health care and professional values into nursing practice. It is important to know what types of dilemmas nurses may face during their careers and how they may have been dealt with in the past. It is also important for nurses to understand what malpractice is and how they may protect themselves from a malpractice suit. LAW VS. ETHICS It is important to first understand the difference between law and ethics. Ethics examines the values and actions of people. Often times there is no one right course of action when†¦show more content†¦Many hot topics in ethics relate to the right to life. These topics include euthanasia and the discontinuation of life support treatments. The right to autonomy is also referred to as the right of self-determination. This right allows for the patient to make their own decisions, such as: determining what course of treatment he may take for a disease, refusing treatment, or refusing medications. The right to health care requires that a society shall provide the funding, personnel, and facilities necessary to ensure that individuals have access to necessary health care. Health care for everyone alsorelates to distributive justice. The question being asked today is shall we take what health care resources we have and spread it very thin but so that everyone has equal access of care, or shall we take what resources we have any distribute them in such a way that we will do the most good to for the overall population? American Nursing Association (ANA) Code of Ethics In 1985, the ANA established a Code of Ethics for nurses that contains eleven points. Each of the eleven points is a general principle rather than specific guidelines. 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Current Account Deficit in Australia and Relevant Economy Policy free essay sample

The overall economy condition of Australia Australia’s economy has experienced positive reforms over the last two decades. These reforms have boosted the country’s economy and raised the country’s standard of living. In 2009, Australia was the 13th largest economy by nominal GDP of US$930. 8 billion (Wikipedia). Positively engaged in world trade, Australia is ranked the 21st largest importer and 23rd largest exporter in the world (Economy Watch 2009). Export commodities are: coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment. The top5 export destinations are China, Japan, North Korea, India and United States. Import commodities are: machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products. The top5 import sources are China, United States, Japan, Thailand and Singapore (Australia fact sheet 2009). Balance of payments in Australia Although Australia has achieved significant economy growth, it still has many problems in developing its economy. To be specific, Australias large current account deficit is currently the greatest concern to some economists. For the past three decades, Australia has had a BOP deficit with its CAD having grown from $195 million in December, 1979 to $18483 million in December, 2009 (ABSxls). With the enormous BOP deficit, Australia has to take measures to control the sources of BOP deficit, so that it will not fall into a debt crisis like Greece’s. The latest BOP statistics are listed below: Table1 Current account ;-18483 Goods and Services ;-7467 Goods and Services credits ;60234 Goods and Services debits ;-67701 Goods ;-6898 Goods credits ;46638 Goods debits ;53536 Services ;-569 Services credits ;13596 Services debits ;-14165 Primary income ;-10897 Primary income credits ;9672 Primary income debits ;-20570 Secondary income ;-119 Secondary income credits ;1608 Secondary income debits ;-1727 (Sources: ABS 2009) Table2 Capital and financial account ;17943 Capital account ;-35 Acquisitions/disposals of non-produced non-financial assets ;0 Acquisitions/disposals of non-produced non-financial assets credits ;0 Acquisitions/disposals of non-produced non-financial assets debits ;0 Capital transfers ;-35 Capital transfers credits ;0 Capital transfers debits ;-35 Financial account ;17978 Direct investment ;7731 Direct investment, Assets ;-6087 Direct investment, Liabilities ;13817 Portfolio investment ;-298 Portfolio investment, Assets ;-34144 Portfolio investment, Liabilities ;33846 Financial derivatives ;-2165 Financial derivatives, Assets ;12133 Financial derivatives, Liabilities ;-14297 Other investment ;11529 Other investment, Assets ;-4008 Other investment, Liabilities ;15536 Reserve assets ;1181 Net errors and omissions ;541 (Sources: ABS 2009) From the first chart, we can see that the major components of current account deficit were primary income deficit and goods deficit. At the end of 2009, Australia had a current account deficit of $18483 million in current price terms. Specifically, primary income had a total negative amount of $10897 million, which forms the largest part of current account deficit. Goods had a negative amount of $6848 million, so Australia’s net import was $6848 million. Besides, services account had a negative amount of $569 million, which illustrates that services import exceeded the services export by $569 million. There were large amount of transactions in goods and services, with a total debit of $67701 million and a total credit of $60234 million. From the second chart, we can see that little capital transactions happened during 2009. The total amount of capital account was -$35 million, which belonged to capital transfer. Financial account had a surplus of $17978 million, with the imbalance in other investment account contributing $11529 million to the surplus. Although there were large amount of transactions in portfolio investment account (assets had an amount of -$34144 million and liabilities had an amount of $33846 million), its net amount was only -$298 million. According to analysis above, the major contribution to current account deficit is the imbalance in primary income. As the debits amount exceeds the credits amount by over $10000 million, which tells us that income outflow—that is the income paid to foreigners by Australians is the major cause of current account deficit, government should take measures to minimize income outflow in order to control the deficit of current account. Since the current account balance is synonymous with net foreign investment in national income accounting (Carbaugh 2002), we can also analyse foreign investment to get an understanding of current account deficit. Table3 Sep Qtr 2009 Dec Qtr 2009 Sep Qtr 2009 to Dec Qtr 2009 $m $m % change _______________________________________ BALANCE ON CURRENT ACCOUNT Trend estimates -14 587 -17 509 -20 Seasonally adjusted -14 731 -17 459 -19 BALANCE ON GOODS AND SERVICES Trend estimates -3 345 -6 349 . . Seasonally adjusted -4 224 -6 062 . . NET PRIMARY INCOME Trend estimates -11 027 -10 973 Seasonally adjusted -10 270 -11 234 -9 LEVELS AT END OF PERIOD International Investme nt Position 756 233 768 628 2 Net foreign equity 122 511 120 733 -1 Net foreign debt 633 722 647 895 2 ________________________________________ . . not applicable nil or rounded to zero (including null cells) Sources: ABS 2009) Table4 Australias investment links, as at 31 Dec 2009: Level of Australian investment abroad (A$m): 1,159,088 Level of foreign investment in Australia (A$m): 1,927,716 (Sources: Australia fact sheet 2009) From table4, we can calculate the net foreign investment is $768628 million at the end of 2009, which is consistent with the figure in table3. From September to December, international investment position increased by $ 12035 million while the current account deficit increased by $2922 million, which indicates that the change directions of IIP and CAD are the same. With net foreign debt account for the major part of IIP, we can come to the conclusion that foreign investment contributes to the CAD in Australia, especially the foreign debt. Table5 International Investment (Sources: ABS 2009) According to figures in table5, Net IIP increased steadily from June, 2008 to December, 2009, which indicates a possibility of continuous growth of Net IIP. From analysis results above, change directions of IIP and CAD are the same, thus we can make a prediction of increase in CAD for the year 2010. The importance of BOP to Australia’s economy Table6 SELECTED INTERNATIONAL ACCOUNTS RATIOS(a)(b) 6-07 07-08 08-09 Sep Qtr Dec Qtr Mar Qtr Jun Qtr Sep Qtr Dec Qtr 2008 2008 2009 2009 2009 2009 GDP ($MILLION) 1 091 328 1 181 751 1 256 458 317 319 329 497 301 194 308 448 312 031 nya Current account –5. 4 –6. 2 –3. 0 –5. 5 –4. 4 –3. 2 –3. 0 –3. 4 –4. Goods and Services –1. 2 –2. 1 0. 5 –1. 6 –0. 7 0. 3 0. 5 0. 1 –0. 6 Credits 19. 7 19. 8 22. 7 20. 8 22. 4 23. 2 22. 7 21. 6 20. 0 Debits –21. 0 –21. 8 –22. 2 –22. 4 –23. 1 –22. 9 –22. 2 –21. 4 –20. 6 Primary income –4. 2 –4. –3. 4 –3. 9 –3. 7 –3. 5 –3. 4 –3. 4 –3. 5 Net International Investment Position 56. 1 56. 0 57. 1 57. 2 57. 7 58. 1 57. 1 60. 4 61. 4 Net foreign equity 6. 7 4. 8 6. 4 3. 0 1. 4 4. 3 6. 4 9. 8 9. 6 Net foreign deb t 49. 4 51. 2 50. 6 54. 2 56. 3 53. 8 50. 6 50. 7 51. 8 ya not yet available (a) Derived from current price original data. The net international investment position ratios are derived from the net foreign liabilities at the end of the period and GDP for the year ended with that period. Other ratios use only data for the year ended with the period shown. (b) For the latest reference period, GDP for the year ended with the previous quarter is used. (Source: ABS 2009 ) From table6, we can see that the ratio of current account to GDP increased from an absolute value of 5. 4% (06-07) to 6. 2% (07-08), which shows the growing importance of current account in Australia’s economy growth. The ratio fell to 3. 0% (08-09) as a result of world economic recession. However, after June of 2009, it started to increase again. Net IIP has an increased ratio of 56. 1% (06-07) to 57. 1% (08-09) and at the end of 2009, the ratio boosted to 61. 4%. The steadily increased ratio demonstrates IIP has a close connection with Australia’s economy growth. Therefore, we can safely make the conclusion that current account balance plays an increasingly important role in Australia’s economy and change of Net IIP have direct connection with Australia’s GDP. Imbalance of primary income account accounts for the main part of CAD while Net Foreign debt accounts for the main part of Net IIP. Here comes the question that is the continuous CAD a problem to Australia’s economy? For Australia, the answer is â€Å"no†. As a net borrower, if Australia borrows money to invest in capital equipment which generates a high enough return instead of borrowing money to consume , then the CAD is beneficial for the economy growth since the investment reaps benefit from borrowing (McTaggart, FindlayParkin 2003). Table7 LEVELS OF FOREIGN DEBT AT END OF PERIOD AND SELECTED RATIOS ________________________________________ Period Debt liabilities(a) $m Reserve assets $m Other debt assets $m Net foreign debt(a)(b) $m Ratio of net foreign debt to GDP(c) % Ratio of net interest to goods and services credits(d) % ________________________________________ANNUAL ________________________________________ 1996–1997 302,846 -22,791 -71,427 208,628 39. 4 -11. 2 1997–1998 346,971 -24,260 -94,929 227,782 40. 6 -9. 7 1998–1999 359,839 -23,954 -105,196 230,689 39. 0 -9. 4 1999–2000 421,771 -27,948 -116,019 277,804 44. 2 -10. 6 2000-2001498,775-37,951-147,352313,47246. 6-9. 6 2001-2002523,654-37,435-156,456329,76347. 0-9. ________________________________________ (a) Levels from December quarter 1991 are not strictly comparable with levels from earlier periods, due to changes in methodology. (b) Equals debt liabilities less reserve assets and other debt assets. (c) Ratio derived by expressing net debt at a particular date as a percentage of current price original GDP for the year preceding th is date. (d) Ratio derived by expressing net interest on debt as a percentage of exports of goods and services for the year preceding this date. (Source: Balance of Payments and International Investment Position 2002). Table7 illustrates that although ratio of net foreign debt to GDP increased from39. 4% to 47. 0% between1996 and 2002, the ratio of net interest to goods and services credits decreased 2 percent for this period. Hence, it can be claimed that Australia has used the borrowed funds wisely during this period and this increased consumption possibilities for all Australians in the future. If Australia continues to use foreign debt wisely, CAD will bring benefit to the country. Analysis of consequences and prospects of BOP The GDP of Australia has grown with Australia’s BOP deficit. In other words, CAD in Australia is good for the nation’s economy development. With a large growing amount of Net IIP, Australia’s economy growth will be greatly influenced by foreign investments. Thus, a continuing deficit in BOP is expected for the following years. Put it into details, large amount of transactions will be entered into goods and services account which belongs to current account and similar transactions will be recorded in portfolio investment account which belongs to capital and financial account. The total amount of BOP deficit will increase steadily with Australia’s GDP growth. Internal balance vs. external balance The basic objective of economic policies is the country’s economic stability with full employment. This is known as internal balance and considered to be of primary importance. What’s more, policy makers are also aware of a nation’s BOP position. A nation’s external balance is said to be achieved when it realizes BOP equilibrium. Nations usually consider internal balance to be the highest priority unless they are confronted with large and persistent external imbalances, when the priority will be switched to external balance (Carbaugh 2002). Major internal variables of Australia According to statistics released by CIA for the year of 2009, at the end of 2009 Australia had a GDP of US$ 824. 3 billion (PPP) and increased by 1% compared with the year before. Its labour force was 11. 44 million, ranked 44 in the world. The unemployment rate was 5. 7% and increased by 1. 5% from the year before, ranked 55 in the world. The inflation rate fell from 4. 4% in 2008 to 1. 9% in 2009, ranked 62 in the world. The average exchange rate per US dollar is 1. 2894, a slight increase from 2008. In summary, Australia enjoyed an economy growth with relatively low inflation rate and unemployment rate. Macroeconomic and microeconomic policy settings The significant economy performance of Australia in 2009 cannot be apart from the nation’s wise implementation of macroeconomic and microeconomic policies. With its wide choice in economy policy, Australia recovered from the world economic recession quickly. Microeconomic policies Product and labour market reforms have been implemented since 1990’s. This has led to the growth in employment and productivity. Owing to a lack of water supply, water management issues have remained one of hot topics for discussions of Australia’s economy policy. In order to reduce the over-exploitation and wastage of water and natural resources, reforms were put into effect. The increase in aging population, shortage of skilled labour and adequate manpower lead to the labour supply problems in Australia. Immigration is a main contributor to the labour supply. Policies related to incentives for work has formulated. Economy policies also include provision of benefits to disabled workers who are over 55 years old. As a result of successful microeconomic reform, private sector savings and investment decisions were used to achieve external balance. Being acknowledged as a capital-importing nation, Australia invites foreign savers to make investments here, causing the current account deficits (Nguyen n. d. ). Other economy policy includes improvement and development of education system, reorganizing industrial relations and putting stress on infrastructure management (Economy Watch c. 2009). Macroeconomic policies Australian government has used macroeconomic policies successfully in the rebound of Australian economy after the global financial crisis. Before, fiscal policy was once used for achieving external balance objectives, and then it was abandoned quietly due to the successful microeconomic reform (Nguyen n. d. ). During the economic recession, a fiscal stimulus package worth over US$50 billion was brought into effect to neutralize the effect of the slowing world economy, while the Reserve Bank of Australia implemented the monetary policy of reducing interest rates to historic low levels. These policies together with aggregated demand for commodities—especially from Chinahelped the Australian economy rebound after just a quarter of negative growth (CIA 2010). Australia was one of the first developed countries to raise interest rates after the economy downturn. Since October, 2009, it has raised interest rates for 3 times. â€Å"As a result of an improved economy, the budget deficit is expected to peak below 4. 2% of GDP and the government could return to budget surpluses as early as 2015† (CIA 2010). Recommendations for future policies Macroeconomic policies should be used in conjunction with microeconomic policies in boosting Australia’s economy. Since the BOP deficit has an increase trend, prudent investigation should be made to analyse the potential threat of CAD to Australian economy. Interest rates can be further increased to attract private investment from foreign savers in exploitation of Australia’s abundant natural resources. Economy policy should also be made in encouraging local residents to make more savings or investments as a source of their superannuation after retirement. As a result, the old will demand less support from the government and the financial burden of Australian government can alleviate to some extent, which leads to a decrease in government deficit and ultimately reduces the CAD. Furthermore, â€Å"reduction in geographical segmentation of markets should be introduced as it slows down greatly efficiency of labour† (Economy Watch c. 2009). Conclusion From contents above, we can come to the conclusion that the main contribution to Australia’s CAD is primary income deficit and that net international investment has a close connection with BOP deficit. Whether CAD is beneficial or harmful to Australia’s economy depends on how the borrowed money is spent. If it is used for investment, then CAD will bring benefits to the country’s economy. Or else, it will be an obstacle to the economy growth. Economy policy is the major determinant of Australia’s economy growth. Macroeconomic policies should be combined with microeconomic policies in promoting the nation’s prosperity. The wide implementation of Macroeconomic policy enabled Australia to recover from the economic downturn quickly. The success of microeconomic reforms promotes the continuous growing of Australian economy. Both macroeconomic and microeconomic policies can be used for adjusting the external balance. Bibliography ABS 2009, Balance of Payments and International Investment Position, ABS 2002, Balance of Payments and International Investment Position , Carbaugh, RJ 2002, International Economics, 8th edn, Thomson-South Western College Publishing, Cincinnati, Ohio CIA 2010 the world fact book Australia, Economy Watch 2009, Australia Economy, Economy Watch 2009, Australia Economic Policy, McTaggart, D. , Findlay, C. Parkin, M. 2003, Economics, 4th edn, Addison Wesley, Sydney, pp. 808-819 Nguyen, D n. d. , Macroeconomic Policy in Australia, Market Information and Research Section 2009, Australia fact sheet,