The Official and Private Sector Observer

1192 Words Jan 25th, 2018 5 Pages
In theory, the official and the private sector observerMonetary policy , current expectations , the central bank of a country how to control the supply of money in the economy , changes in interest rates , and maintaining control of the money supply . In other respects, monetary policy is the money you can borrow at rates . A good monetary policy, the central bank's target is that all have achieved a certain limit . It also depends on the economy , it is important to know how monetary policy should be implemented. It uses a set of tools to achieve these objectives and to combat the problem . We will mainly talk about the Reserve Bank of Australia and about set by the U.S. Federal Reserve Bank 's monetary policy slightly down Australia's monetary policy. Strategy is called austerity , if it reduces the size of the money supply or raising interest rates. Expansionary policy to increase the size of the money supply , or lower interest rates. Expansionary policy is traditionally used by lowering interest rates to solve the problem of unemployment in a recession , and austerity policies including raising interest rates to combat inflation. Changes in interest rates will affect the growth and cost of credit , thus affecting consumption, production, prices and employment in the economy is the social problems of the Reserve Bank of Australia . Monetary policy is the central bank 's most important ongoing responsibility, and what impact is defined as funds take…
Open Document