Inflation target on the position of the monetary-policy rule

Assignment Help Business Economics

Reference no: EM131195982

Briefly explain the nature of the open-market operation required to bring down the overnight cash rate by 25 basis points.

Based on the May Minutes, what were the main reasons behind the RBA’s move to cut the overnight cash rate? Use the aggregate demand-inflation (ADI) analysis to explain the likely effects of this rate cut on the Australian economy in the short and long run?

What is the effect of an inflation target on the position of the monetary-policy rule? Why does the RBA follow an explicit 2–3% inflation target rather than alternative rules?

Reference no: EM131195982

Questions Cloud

Product has elastic or inelastic demand : The Total Revenue Test is a method of quickly calculating whether or not a product has elastic or inelastic demand. Simply put, an entrepreneur or manager can simply look at the total revenue created from a product using the income statement from mon..

Assume country is in fixed exchange rate regime : The following questions are based on fixed exchange rate and/or flexible exchange rate regime from the perspective of macroeconomic policy implications in an open macroeconomic model. Assume a country is in a fixed exchange rate regime such as China...

What type of exchange rate and fiscal policy : The following questions are based on open economy macroeconomic model. The answers must be written in your words along with graphical illustration. Without explaining in your words, the graphical illustration alone will not be credible. what type of ..

Alternative measures of the wellbeing of the society : Discuss the advantages and disadvantages of using GDP as a macroeconomic indicator. Identity and explain the rationales behind alternative measures of the wellbeing of the society.

Inflation target on the position of the monetary-policy rule : Briefly explain the nature of the open-market operation required to bring down the overnight cash rate by 25 basis points. What is the effect of an inflation target on the position of the monetary-policy rule? Why does the RBA follow an explicit 2–3%..

Explain the rationales behind alternative measures : Should gross domestic product (GDP) be used as a measure of the wellbeing of the society? Why? Why not? In your short essay, you are required to address the following points: Identity and explain the rationales behind alternative measures of the well..

Draw the demand and marginal cost curves : The market for gilders is initially competitive and the market demand is: P=315- 0.6QD . The combined marginal costs of the firms in the gilder industry are: MC= 9+ 0.3Q. Draw the demand, and marginal cost curves. Calculate and show how much these fi..

Poster for hispanic male of certain description : When a serial murderer known as the “Railroad Killer” was being sought some years ago, the FBI interviewed people who had been in the areas of the crimes and might have seen the perpetrator. As a result of those reports, the FBI issued a Wanted poste..

Marginal propensity to consume-marginal propensity to save : What are the marginal propensity to consume (MPC) and marginal propensity to save (MPS)? How are the two concepts related? How are the two concepts related to the consumption and saving functions?

User Account

All Pages