Understanding the economic “climate” …

An understanding of the economy and the many, often conflicting factors at work within it, will lead to a better appreciation of money and money related issues.

The Australian economy has changed significantly over the past 200 years, with the relative importance of each sector changing asdevelopment has progressed.

There are four (4) key sectors making up the complex economy we have in Australia:

 

The economy is the “environment” within which goods and services are produced and consumed. Economies come in all shapes and sizes, from the small eyeweardock subsistence farm village based economies, to the large, sophisticated, hi-tech industrialised economies.

Business cycles in the past have typically lasted 5-7 years, with different market “indicators” along the way tracking progress through each “season”.

Consider which “Economic Season” we might currently be experiencing:

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