Monetary Policy

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Title: Monetary Policy

Essay Details:

Subject: Miscellaneous

Author: Bernadette C

Date: December 23, 2012

Level: University

Grade: A

Length: 4 / 943

Essay text:

The goal of the Australian monetary policy is chiefly to keep inflation in between 2-3%. Monetary policy is generally referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy has the goal of raising interest rates to combat inflation. The inflation target is achieved through periodic adjustments to the RBA interest rate target...

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