Financial Economics

China is an emerging superpower from Asia. China has shown a significant amount of raise in GDP and development in the country. The credit to this development has given to the policies and steps taken by the Chinese Govt. in past. The expansion of their business is appreciable but nowadays these Chinese investments forced other countries to double check of their decisions to invite China into their country. We have different examples like Sri Lanka & Pakistan etc. China has invested in those countries heavily and taken their assets on a lease. This is creating a pressure on the other countries like USA and India. China has now extended his reach to Oceania, and it seems like Australia is a hot spot for China. Australia also has given a boost to relations with China. I am not saying the relationship with China is bad for Australia, but I am saying Australia is over-dependent upon China. To understand let's see in detail. 1.       Exports and...

Australia holds a crown for a no crisis economy from past many years, Australia is also ranked in fewer unemployment rates, and ranked 10 th at world’s happiest country. As you know about a housing bubble which was burst in the USA in 2007 and it causes the world for the great recession. So why and how Australia is going to face this same scenario in upcoming years and does it going to be as bad as like the USA or going to be a smooth landing? I am going to talk about this on this blog. To understand this let’s first see what a housing bubble is. In simple words, the property value is raising, and at a point, it is reached where the average income of a person is less than 1/3 rd of property prices in a year, till 1/3 rd there is no problem, but when prices rise above this, then it is a huge problem. It is a situation when an increase in supply tops the demand for houses, and many owners have bought more loan than the worth of their home. The biggest example is ...