Economic Principles Week 11 Assignment

Analyzing the RBA's May 2020 interest rate decision and explaining the reasons behind it, the practical implementation of the decision, and the expected economic outcomes.

The document discusses the various aspects of monetary policy and how it affects the economy.

Monetary policy

This document discusses the effects of low interest rates on the Australian dollar and international trade. It explores how low interest rates may lead to inflation over time. Additionally, it highlights the need for alternative microeconomic reforms, such as tax reform, in the post-COVID world to improve economic outcomes for Australia.

Impact of Low Interest Rates on Australian Dollar and International Trade

This article provides an overview of the monetary policy of the Reserve Bank of Australia. It explains the role of interest rates, the impact of the business cycle stages, and the influence on budget forecasts. The article also discusses the importance of maintaining growth and sustainability in the economy.

Monetary Policy of Reserve Bank Australia

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.

Economics

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

This case study discusses the Reserve Bank of Australia's cash rate decision, objectives of monetary policy, functions of money and RBA, and how an increase or decrease in cash rate affects household consumption, business investment, GDP, inflation, and housing market. It also explains why RBA compares domestic and global macroeconomic indicators and justifies RBA's decision to maintain the cash rate at 1.50 percent. The study uses the money market equilibrium model and monetary transmission mechanism to illustrate how an increase or decrease in cash rate affects the economy.

Hartpury University and Hartpury College

Finance

Mechanical Engineering

Statistics and Probability

Case Study on RBA Cash Rate Decision

Monetary Policy

Holy Trinity University

Study on Australian Monetary Policy

The essay discusses the recent deflation threat of Australian economy raised in recent years. The economy currently suffers with a lower than expected inflation rate. Both domestic and international economic condition explain the below trend inflation rate. RBA sets the inflation target in Australia and adjusts cash rate accordingly. Since last two years, RBA has kept the interest rate fixed at 1.50 percent. The normalized interest rate affects the investors’ decision. Structural factors such as globalization, status of labor market and technical changes explain the low inflationary pressure in Australia.

Monetary policy

End of preview

Impact of Low Interest Rates on Australian Dollar and International Trade

Monetary Policy of Reserve Bank Australia

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

Case Study on RBA Cash Rate Decision

Study on Australian Monetary Policy

Deflation Threat in Australian Economy: Role of RBA and Monetary Policy

Monetary policy

End of preview

Impact of Low Interest Rates on Australian Dollar and International Tradelg...

Monetary Policy of Reserve Bank Australialg...

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

Case Study on RBA Cash Rate Decisionlg...

Study on Australian Monetary Policylg...

Deflation Threat in Australian Economy: Role of RBA and Monetary Policylg...

Impact of Low Interest Rates on Australian Dollar and International Trade

Monetary Policy of Reserve Bank Australia

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

Case Study on RBA Cash Rate Decision

Study on Australian Monetary Policy

Deflation Threat in Australian Economy: Role of RBA and Monetary Policy