Back
Back
Back
Back
Back
Back
Back

Welcome to Live Chat

Welcome to LiveWebTutors Services, World's leading Academic solutions provider with Millions of Happy Students.

Call Back
logo

24x7 Support Available

To Get the Best Price Chat With Our Experts

chat now

In A Hurry? Get A Callback

logo

shopping cart 0

Subject Solutions Code Description Price Delete

Amount Payable : $0

continue shopping proceed to checkout

World's Leading Assignment Library

Explain the meaning of central bank independence. Discuss the relationship between central bank independence and inflation targeting. Explain the reason (or the ultimate purpose) the commercial banks

Question Preview:

Explain the meaning of central bank independence. (1 mark) 2. Discuss the relationship between central bank independence and inflation targeting. (2 marks) LEARNING OBJECTIVE 2: EXPLAIN THE FUNCTIONS OF THE EXCHANGE SETTLEMENT ACCOUNTS. 3. Explain the reason (or the ultimate purpose) the commercial banks are legally mandated to hold funds in exchange settlement accounts with the RBA. (2 marks) 4. Commercial banks are required by law use their exchange settlement accounts to make three types of payments. List these three types of payments. (3 marks) LEARNING OBJECTIVE 3: EXPLAIN THE ...

View Complete Question >>

Question Preview:

Explain the meaning of central bank independence. (1 mark) 2. Discuss the relationship between central bank independence and inflation targeting. (2 marks) LEARNING OBJECTIVE 2: EXPLAIN THE FUNCTIONS OF THE EXCHANGE SETTLEMENT ACCOUNTS. 3. Explain the reason (or the ultimate purpose) the commercial banks are legally mandated to hold funds in exchange settlement accounts with the RBA. (2 marks) 4. Commercial banks are required by law use their exchange settlement accounts to make three types of payments. List these three types of payments. (3 marks) LEARNING OBJECTIVE 3: EXPLAIN THE FRAMEWORK IN AUSTRALIA TO SET THE POLICY INTEREST (CASH) RATE. 5. Australia’s CPI inflation rate last quarter was only 1.3% which was below the RBA’s inflation target. There was some speculation that the RBA would cut the cash rate from 2% to 1.75%. a) Outline the actions of the RBA if it were to lower the cash rate from 2% to 1.75%. (2 marks) b) Illustrate this cut on the diagram below. (1 mark) LEARNING OBJECTIVE 5: UNDERSTAND THE EFFECTIVENESS OF MONETARY POLICY ON GDP & INFLATION, DEPENDS ON THE STRENGTH OF THE MONETARY POLICY TRANSMISSION CHANNELS. 6. Briefly discuss the meaning of an effective monetary policy. (1 mark) 7. Outline one monetary policy transmission mechanisms for a cut in the policy interest rate. In other words, discuss how a decrease in the policy interest rate may increase inflation (or counter deflation) and increase GDP. (1 mark) LEARNING OBJECTIVE 6: EXPLAIN THE DIFFERENCE & IMPLICATIONS OF NOMINAL & REAL INTEREST RATES AND LEARNING OBJECTIVE 7: RECOGNIZE THAT TRADITIONAL MONETARY POLICY IS LIMITED BECAUSE THE POLICY (NOMINAL) INTEREST RATE CANNOT BE LESS THAN ZERO. 8. Assume the following situation where the economy is experiencing deflation rate of 2% and the central bank has reached the traditional monetary policy limit where the policy interest rate is zero. Answer the following questions. a) Calculate the real interest. (1 mark) b) Discuss the problem this situation creates for a central bank trying to stimulate economic activity (2 marks) LEARNING OBJECTIVE 8: EXPLAIN THE CAUSES OF ASSET BUBBLES & THEIR IMPLICATIONS FOR THE BROADER ECONOMY. 9. Answer the following questions about the Sydney housing market. a) Outline the fundamental problem difficulty in determining if the Sydney housing market is experiencing a bubble. (1 mark) b) The home mortgage rate interest rate is around 4.32%. The CPI inflation rate is 1.3%. Calculate the real interest rate on home loans in Australia. Assess the influence this would have on creating any property bubble. (1 mark) c) Evaluate whether the housing market in Sydney satisfies the characteristics of an asset bubble as outlined by Shiller. Robert Shiller won the Nobel Prize in Economics. He argues that asset bubbles are caused by irrational crowd behaviour. He proposes a mental health checklist to check for asset bubbles. Diagnose the mental health of people and Sydney property market? (2 marks) Mental Health Checklist Sydney Property Market Diagnostic Checklist Yes No Rapidly Increasing Prices People tell each other stories that purport to justify the bubble (Belief that prices will continue to increase People feel envy & regret having not participated Constant stories in the news media

View Less >>

Solution Preview

The “Central bank independence” refers in regard to the freedom for the policy makers in respect of any end of government influences or any direct political interferes during the conduct of policy

question Get solution

$15

Orginal Price : $19.50

Pay Now

Upload Assignments

250 words

side

Get Your Assignment

Don’t delay more, place your order now. Quick assignment help will be offered to you.

Order Now

CUSTOMER REVIEWS

Excellent

logo

Based on 702 reviews See all reviews here

One of the Best Service

I trust LiveWebTutors for my assignments because of their ability to deliver the perfect assignments time and again. Only a few of my assignments required minor revisions. The rest assured it is the best assignment writing service in the market.

Elizabeth
Sydney

Great Service and on time

I felt so exhausted and burdened with the large number of assignments I had to write and desperately needed someone to help me with all the writing and there was LiveWebTutors company on the internet. They finished my assignments before the due date and also offered me a first-timer discount.

Christina
Perth

One of the Best Assignment Provider

I ordered my Mathematics and Marketing assignments from them last month. I received the content on the set date. Most importantly, the assignments were well-written and plagiarism free. I scored a top grade for the assignment written by them. They are a reliable company.

Oli
Brisbane

Very Helpful Customer Service

I was quite unsure about getting my assignment written online but after coming across LiveWebTutors.com, all my worries have vanished. The quality of the assignments written by their writers is just invincible. Their customer support is very polite and helpful. You should try their service at least once

Kabir
Adelaide