The Objectives of Monetary Policy (HSC SSCE Economics): Flashcards
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Monetary policy definition
Monetary policy definition
RBA actions to influence cost & availability of credit
RBA stands for
RBA stands for
Reserve Bank of Australia
Three formal objectives of monetary policy
Three formal objectives of monetary policy
Currency stability, full employment, economic prosperity
Stability of currency now means
Stability of currency now means
Low and stable inflation
2023 review recommended what mandate?
2023 review recommended what mandate?
Dual mandate: price stability & full employment
RBA's inflation target range
RBA's inflation target range
2-3% annual inflation
Why target is range not precise number
Why target is range not precise number
Flexibility for external shocks outside RBA control
Average inflation since 1990s regime
Average inflation since 1990s regime
2.6%
Reserve Bank Act 1959 establishes
Reserve Bank Act 1959 establishes
Formal objectives and powers of RBA
Key indicators RBA monitors (3 examples)
Key indicators RBA monitors (3 examples)
Inflation, unemployment rate, GDP growth