Mid-September 2008 saw a significant change for the Australian economy, with the collapse of Lehman Brothers triggering the global financial crisis. The global financial crisis was characterized by a tightening of the availability of money in foreign markets and required governments to intervene to maintain market stability. The Australian economy and its leaders have sparked much discussion about the prospect of a global recession, while most expected the financial crisis to have a major impact on the Australian economy, a factor that did not not taken into account was the immediacy of its effects. During the December 2008 quarter, company stocks were devalued by $3.4 billion, the largest decline on record. Additionally, there has been a considerable decline in property prices, leading many businesses/people to be left with too much debt instead of too little wealth. Consumer confidence then collapsed, leading to a deterioration in consumption. Throughout September and into October, the financial crisis spread from the United States to Europe and the entire global economy, with growth in economies contracting. In response to the most difficult global economic conditions since the Great Depression, the 2010 Budget and Economic Recovery Plan focused on nation-building and was designed to boost employment, create a strong foundation for growth future and enable the Australian economy to benefit from the global recovery.Key initiativesStimulus now and investments for the futureA balanced fiscal policy stance has been targeted by the government in response to the global recession between short-term and in the long term. These measures involved paying bonuses to low- and middle-income Australians to inst...... middle of paper ......d 2009, "Rudd stimulus plan protected jobs: OECD". Retrieved May 23, 2010 from -http://www.news.com.au/business/rudd-stimulus-package-protected-jobs-oecd/story-e6frfm1i-1225775501075(nd). Monetary Policy in Australia 2010 (pp. 1-6). West Perth: WACE Revision Centre. Wayne Swan 2009, “Budget Speech 2009-10”, Australian Government. Retrieved May 20, 2010 from - http://www.ato.gov.au/budget/2009-10/content/speech/html/speech.htmWayne Swan 2010, 'Budget Speech 2010-11' Australian Government. Retrieved May 20, 2010 from - http://www.budget.gov.au/2010-11/content/speech/html/speech.htmWestpac Institutional Bank May 2010, “Westpac Market Insights Australia, New Zealand, G3 & China” . '. Retrieved June 6, 2010 from - http://www.westpac.com.au/about-westpac/media/reports/australian-economic-reports/