‎If you remember me, then I don’t care if everyone else forgets.- Haruki Murakami, Kafka on the Shore



Tuesday, July 31, 2012

#297- Economics behind Olympic success

You know I was googling the medal tally (my daily ritual) and one of the news articles was about the BRIC'S and also about the relationship between Australia's medal tally and our appreciating dollar. SO the curious george in me decided to read them because they might beef up my essays (yeah right!)

Basically the AUD article said that whenever Australia had a low exchange rate then we would do reasonably well, i.e. in 2000 and 2004. Not sure if you know this but recenting Australia has been experiencing an appreciating dollar, rising by 16.5 per cent against the British pound over the last two years and 42 per cent against the euro since the Athens Olympics in 2004. Also an appreciating dollar = cheaper shopping = Increased spending and more time away from training and that was the logic used behind this article.

They also commented about the reducing spending by the Australian Govt on sport, why? It's because of the govt's contractionary stance as the govt aims to achieve a buget surplus over the course of the business cycle bad thing is that the figures don't support this......

Moving onto the next article, where they tried to show the relationship between emerging countries i.e. BRICs and their growth and the correlation to medal tallies. Click here if you want to read it. Also if anyone can be bothered but is the Soviet Union counted as part of BRICs because I always thought that it just stood for Brazil, Russia, India and China.

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