Economics for Manager: Understanding Australia's Economic Environment and RBA's Role

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Economics for Manager
Essay
8/30/2018
Student Name

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Executive Structure
The paper aims to have the understanding of Australia and its economic environment, which
is regulated by the Reserve Bank of Australia. In the essay, the areas related to inflation,
deflation and recession of Australia and other countries have been discussed. These have
been discussed to analyze the environment and the policies need to be made by the RBA to
regulate the market without any interruption of the price level in the economy. The factors
leads to the deflation in the country have been discussed. The factors, which affect the
advantage of the economy, have also been discussed in the report.

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Contents
Introduction................................................................................................................................3
Role of RBA...............................................................................................................................3
Tools available at disposal of RBA to carry out its functions....................................................3
Current economic environment in Australia..............................................................................4
Connection between Recession and Inflation............................................................................6
Deflation.....................................................................................................................................7
Leverage in economy.................................................................................................................8
Conclusion..................................................................................................................................8
Bibliography.............................................................................................................................10

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Introduction
The essay discusses the role of Reserve Bank of Australia in the country. The essay discusses
the tools and measures used by the RBA to control and regulate the financial market in the
country. The tools used by the Reserve Bank of Australia at disposal to carry out the function
in the economy. The Reserve Bank of Australia performs the function in order to maintain the
stability in the country, which can contribute, to the development in the country
(Morningstar, 2017). The growth and development of the country is the only aim of the
Reserve Bank of Australia. The measures have been taken by Reserve bank of Australia to
control the inflation, deflation, and recession in the country. The factors, which leads to these
problems arise in the country, has also been discussed in the essay. The other measures
related to the advantage and performance of Australia has been discussed (Tamura, 2014).
Role of RBA
Reserve bank of Australia plays an important role in Australia. Reserve Bank of Australia is
responsible to make the monetary policy in the country so that the flow of money will be
there in the economy. RBA is the issuer of currency in Australia and has the sole authority to
issue the currency in the economy. Reserve Bank of Australia has been established in the
economy to foster the economic stability and promotes the economic growth and
development in the country. This will bring the efficiency in payment system (The balance,
2018).
Tools available at disposal of RBA to carry out its functions
A central bank is an independent national authority that conducts and regulates the
functioning of monetary policy in the country. The central bank uses measures to control the