the rising trend of inflation in australia

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Steven M

 

Date added:

June 7, 2017

 

Level:

University

 

Grade:

A

 

No of pages / words:

13 / 3443

 

Was viewed:

4789 times

 

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Essay content:

Since the early 1990’s, the RBA has set a target for the consumer price index (CPI), of 2-3 per cent per annum. Table 1 shows the consumer price inflation rate from 1989/90 until present. The inflation rate can be seen to fall dramatically in the early 1990’s into the RBA target range and remain there until recently...
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Because controlling inflation preserves the value of money, managing inflation is the predominate way in which RBA monetary policy assists in the long-term growth of the economy. With the RBA setting the interest rate on overnight loans in the money market, other interest rates within the economy are affected, thus impacting the behaviour of borrowers and lenders in the financial markets...
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