Australian Monetary Policy

Paper Summary:

This paper presents an outline and critical appraisal of the Reserve Bank of Australia's rationales for the current stance of Australian monetary policy. The paper concludes that the current stance of Australian monetary policy calls for a comprehensive analysis of various economic indicators governing Australia vis-a-vis the global economy, with the goal of continually striving for the maintenance of sustainable economic growth.

Introduction
GDP
Labor Market
Consumer Prices and Inflation
Business and Financial Conditions
Forex Market and Balance of Payment
Resource Exports
Conclusion

From the Paper:

"The continual decline of the US dollar, as has been witnessed recently, might have been a matter of serious concern in the International Financial Market, but the tightening of the monetary policy and the financial markets by the US Federal Reserve is seen as a transitory step toward economic recovery. However, it is a positive sign that the Australian dollar's movement against a host of other floating currency has been modest. Even the performance of the Australian labor market in the recent months, which indicates the unemployment rate declining to its lowest level since the 1970s, deserves appreciation."

More papers on Australian Monetary Policy:

• Descriptive Essay # 150158 : "Australia: Inflation and Monetary Policy"
• Analytical Essay # 149896 : "Australian Economic Management"
• Essay # 69611 : "Monetary Policy in the USA 2004"

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