Macro Economics Paper Essay Example | Topics and Well Written Essays - 1500 words

Macro Economics Paper - Essay ExampleThe Governor additionally alleges that other economies approximately the globe will most likely have a reduction in their GDPs as well. He also observes that the Chinese scotch growth has also been moderated with the monetary conditions indoors the Asian continent becoming softer. Mr. Stevens also asserts that that the prices for various commodities within the globe have reduced in the upstart past despite the fact that most are currently on the rise once more reaching record high values (Stevens, 2012). Therefore, in accordance to the Governors sentiments, this paper tries to evaluate whether the monetary decisions made by the fill-in marges Board concerning the weakening economic state in the globe are appropriate to the untaught and within its mandate. Economic Concepts/ Theories To Be Applied Under the law on the Reserve Bank that was enacted in the year 1959, they are charged with the duty of formulating the countrys monetary policies (Graziani, 2003). This actually involves the act of taking actions so that the interest rates which affects the economic activities in the country. It can be done through ensuring that money is available in the countrys overnight cash markets beca subprogram they affect other variables like the countrys GDP along with the levels of prices (Arnold, 2008). The law of 1959 additionally stipulates that the countrys goals in their monetary policies will be aimed at employment their whole job force, ensuring the countrys currency stiff stable, the prosperity in the welfare of the citizens financially (Bell, 2004). However, in order to ensure that the countrys currency remains stable their central bank has implemented policies that are aimed at controlling the rates of inflation in the country (Mankiw, 2011). The Australian central bank uses a monetary policy that is referred to as inflation targeting which involves their maintenance of stable but low rates of inflation. This policy has widely been utilized within the country with the judgment that it will assist in creating a sounder basis for greater economic growth during the long run periods (Bell, 2004). The countrys Reserve Bank should adopt several policies that range from concepts monitoring their economic growths, business cycles, inflation along with monetary policies and their financial policy regulation. They should also keenly observe the trends within the international economy since they help in showing the direction that capital is currently flowing in (Knoop, 2009). In ensuring that the countrys economy grows, the Reserve Bank should utilize increases in their per capitas to ensure that they grow in the long run periods. It is for this reason that some countries around the globe are termed as being more successful than others while others grow at similar rates (King, 2011). In evaluating the growth the country is experiencing, the board of the Reserve Bank should dissect their investment rates, t heir populations growth along with technological changes being experienced (Australia, CCH, 2011). The figures to be utilized can be found through the use of models like the neoclassical along with endogenous models for growth. In monitoring the business cycle within Australia to ensure their economic gr