Good and Bad Economic News

					Good and bad economic news is a term. One can act only according to one’s
perception because what appears to be good may actually turn out to be bad for the
economy.
  The latest in Australian economic news regarding the financial sector is that the
Commonwealth Bank of Australia started its full-fledged operations in India in
August this year. This is a reflection of Australia’s focus on emerging markets. While
this is simple and indicative, the same cannot be said about other economic news that
one may come across. Actually, it is quite difficult to interpret news that relate to
economy and the state of a nation’s economic health.
  The fact is that not everyone is able to understand economic news easily. What
appears to be a piece of good news may actually have multiple side effects and
actually turn out to be bad for the economy. For example, the rising price of oil may
indicate a rise in stock price of oil companies. That is a piece of good news for those
who have invested in oil. Nevertheless, the other side is that rise in oil prices often
leads to inflation due to increase in transport cost of commodities. That is bad news
and it may eventually lead to reduction in liquidity and, in turn, to fall in price of oil
shares.
  Every piece of economic and business news has to be perceived in relation to other
factors prevailing at a point in time. For example, some very good news actually fails
to bring a positive turn in absence of political stability. Similarly, the media also plays
an important role. Economic news is usually followed by analysis by experts in the
media. They can choose to underplay economic news for whatever reasons. Moreover,
the role played by people having a stake in the expected response to economic news
cannot be ignored.
  Mel writes about economic news among other business related topics.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:4
posted:2/22/2011
language:English
pages:1