Australia is a more developed country in economy. So far,the main category ofits national economy consists of agriculture,mining,service and manufacturing.Mining is the pillar of the national economy. Australia is very rich in natural resources, which is one of the world’s biggest producers of minerals and metals.Australia's mining boom mainly depends on the country's continued emphasis on mineral exploration. As a result, Australia continuously discoversnewore deposits,which promotes the mining boom.The mining boom has had a powerful impact on Australia’s economic growth and on the incomes of most Australians. The purpose of the essay is to discuss the mining boom’s positive and negative effects on the achievement of Australia’s macroeconomic objectives.
The content of macroeconomic objectives mainly has: economic growth, price stability; full employment; external balance. Economic growthis the increase in the amount of the goods and services produced by an economy over time, which is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.Price stability represents thatprices remain largely stable, and there is not rapid inflation or deflation.Full employment is the level of employment rates when there is no cyclical unemployment. External balance is that exports roughly equal to imports over the long run. We have known the content of macroeconomic objectives, now we discuss thatthe mining boom has had positive effects on the achievement of Australia’s macroeconomic objectives. The mining boom can make congratulations to the whole economy. It can improve the development of the manufacture industry because the manufacture can produce the more machines which are needed in the mining boom.The mining boom can improve the development of the local economy. The mining boom needs to build many infrastructuresto meet the demand of the mining boom which can produce the economic growth. At the same time, the mining boom may improve the development of the construction industry. It needs to build more restaurantand café to meet the demand and more houses to meet the demand of living. The mining boom can drive the development of many industries,which can promote the economic growth.
We have analyzed the mining boom’s positive and negative effects on the achievement of Australia’s macroeconomic objectives. We can draw some conclusions about the mining boom. The mining boom can promote the development of the economy in the short run. But in order to achieve the long-term growth of the economy, the Australia should change the economic structure or engage in the deep processing of minerals to acquire the additional value. At the same time, the mining boom can cause the increase of the inflation rate, which damages the objective of the price stability. So the Australia government should use the right monetary policy and fiscal policy to stable the price.The Australia government also should pay attention to the global economy to decide the policy of the mining industry to maximize the benefits of the mining boom.