Monetary economics

for a developing country. There are three main objectives the Reserve Bank of Australia aims to maintain through its function. These are maintaining full employment, stability of the currency, and the welfare and economic prosperity of the people of Australia. Through creation of economic incentive, the RBA keeps the Australian economy stable and prevent ‘overheating’. This means preventing inflation, when there is overproduce and excess production capacity. Inflation was also the main cause of…

|An Analysis of the International Monetary Fund in Jamaica | | |…

taxation or economic stimulus, these two entities are mainly interested in the creation of jobs. Employment creation is pertinent to economic growth because it signifies economic growth through increased investments. Lack of employment can on the other hand lead social ills which are the burdens of any political administration. In order to stimulate the…

The economic cycle is the wavering of the economy during the periods of expansion and contraction. The four stages of the economic cycle are expansion, peak, contraction and trough. The expansion is the growth stage, the peak stage is the stage when the economy is at its highest, the contraction stage is the recession stage, and the trough is the stage of recovery. We are currently in the expansion phase, which is also known as the growth stage of the economic cycle. Our economy has been…

Which of the monetary tools available to the Federal Reserve is most often used? Why? The Federal Reserve has many tools at its disposal to influence the money supply. There are 3 main tools, which are Reserve requirement, Discount rate (Discount loans), and Open market operations. Let’s talk first about this main 3. Reserve requirements are, “requirements regarding the amount of cash a bank must hold in reserve against deposits made by customers. This money must be in the bank's vaults or at…

care, oral care, wound care and women’s healthcare products), Pharmaceutical and Medical Devices. The United States of America Money Policy According to the dictionary of business and economics terms, Monetary Policy can be defined as the efforts of a nation’s central bank aimed at influencing inflation rates, economic growth, and interest…

different episodes and U.S. economic history. In 2001 our economy was faced with a mild recession. It was caused by the Dot.com bubble, 9/11 attacks, and the outrageous accounting scandals. The Fed intervened by implementing new credit into the economy, pushing interest rates to their lowest, even after inflation rates started to rise in 2014. This caused a boom to be created by monetary inflation. In December 2007 on the other hand, caused the great recession. A period of economic financial…

Germany is recognized as the largest and strongest economy in Europe through its abundance in exports and skilled labor force. Germany’s banking system has contributed to its continuous economic growth. The nation overcame a series of economic crises including post-war reparations, the German reunification in 1990, and the mortgage and banking crash in 2007. Despite these difficulties, the country manages to remain affluent with the support of its financial institutions. The banking sector in…

for its open market operations. In November and December of 2008, the bank included bank debentures and certain government agency bonds for use in open market operations, which were originally only Treasury bonds, government-guaranteed bonds and Monetary Stabilization Bonds. In December, 12 more securities company were selected to join the existing 19 banks as Bank of Korea’s counterparties for related-party transaction. In November 2008, the Bank of Korea also resolved to provide 5 trillion…

The End of Summer Complacency The end of summer has seemingly brought a fresh wave of sobriety to global financial markets. The catalyst was Fed Chair Yellen’s speech at the Federal Reserve Bank of Kansas City’s annual conference on monetary policy in Jackson Hole. She stated that the case for a higher federal funds rate had recently strengthened. This hot topic of conversation subsequently shifted to one of how many hikes are potentially likely in 2016, as well as their timing. Chair Yellen’s…