These days, China is the biggest source of Australia’s inbound arrivals after New Zealand, and is usually the fastest growing. Interestingly, however, recent data show that in the year to August 2013, UK arrivals grew faster than arrivals from China (Vamplew 1987; ABS 2013c). Those picture postcards of sun and blue skies must be very appealing during the European winter!
A good example guaranteeing the effectiveness of Forward Guidance, with the aim to keep long-term market interest rates stable and low by maintaining QE and postponing interest rate normalization, is the use of Optimal Control Rule by the US Federal Reserve to allow public anticipation of the interest rate channel.23 However, the effects and significance of communications may vary depending upon whether there is room for policy instruments or not.