The world economy and Australia’s place The second important element is to have a view about how the world economy is evolving and how this will affect Australia. It is fair to say that the major macro-economic events that have affected Australia have to a large extent been imported rather than home-grown.
In Australia, the two major economic events of the last century - the Depression of the thirties and the Inflation of the seventies the world’s only peacetime inflation - were both part of worldwide developments.