The effects of China’s demand for iron ore on the Australian economy

Purpose: To develop your ability to analyse contemporary issues from a macroeconomic point of view
Topic: The effects of China’s demand for iron ore on the Australian economy
In your essay, you are expected to illustrate:
• The broad details of how China’s demand and Australia’s investment and supply of iron ore have evolved over the past 15 years (in brief)
• the impact of this event on the Australian macroeconomic cycle and labour demand
• the consequent challenges for fiscal and monetary policy in managing the macroeconomic cycle
• the opportunities and risks to the future of Australia’s ongoing iron ore (and more broadly its economic) engagement with China.
Note that the Reserve Bank of Australia website (www.rba.gov.au) has a large amount of relevant material to this issue, though you are free to use any number or type of sources that you wish.

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