phirebug said:
Analyse the role and current impact of Monetary policy in managing the Australian economy today.
a) Can I write four written pages about this?
b) Where can I find the information to use in this essay?
c) What information do I use in this essay?
Any help would be much appreciated, thanks in advanced.
a) yes even more if you know your stuff and include diagrams.
b) textbook
c)
-Since Howard re-election in 2005, 4 IR rises
-Define Monetary policy
-Explain how monetary policy works (buyign and selling of government securites)
-Changes in IR effect AD and not supply
-Aims of monetary policy (main aim 2-3% inflation)
-explain in economic terms how the Increase or decrease in IR can increase or decrase inflation and eco activtity. Use diagrams
-Relate and draw implications of interest rate rises and decrases on inflation and consquently employment (Phillips curve)
-How rises in interst rates are more effect at slowing down eco activity than decreaes in IR are at stimilating eco activity.
-Breifly say in conclusion that monteary policy decisions coupled with micro eco reforms have ensured the Australian economy reach its 16th straight year of eco growth. With commodity booom, and strong global eco conditions prevailing, atleast in the forseeable future, the australian economy shoudl continue to experience strong levels of Eco growth.
