Monetary Policy in Australia: A Critical Analysis of the Official Cash Rate

This essay critically examines the influence of the official cash rate in Australia and evaluates the changes in cash rates in 2010 and 2018. It discusses the impact of changes in the official cash rate on inflation and economic activity, the transmission mechanism of monetary policy, and the position of Australia in the global economy. The essay also justifies the monetary policy decisions made by the Reserve Bank of Australia in 2010 and 2018 based on domestic and global economic conditions.