Australia

What steps did the Rudd government take to lessen the impact of the global financial crisis? Why do you believe they took these steps?

The global financial crisis has had a profound impact on nations around the world. I applaud Rudd in his efforts to abate and diminish the influence of an interconnected society on Australia. On method utilized in which to diminish the impact on the Australia was to instill confidence in the financial system overall. Rudd first guaranteed deposits of all major financial institutions in Australia. This prevented bank runs as consumers, fearful for their money, rush to withdraw much needed funding from banks. Instead, by guaranteeing deposits, the government was helping financial institutions avoid solvency risk. With no deposits, banks would be unable to lend or conducts other financial services oriented activities. This in turn would lower the likelihood of an Australian recovery which would be...
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