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

large Economics Paper - Essay ExampleThe Governor additionally states that other economies roughly the glob leave most likely have a reduction in their GDPs as well. He excessively observes that the Chinese economic growth has also been moderated with the pecuniary conditions within the Asian continent fit softer. Mr. Stevens also asserts that that the prices for various commodities within the globe have reduced in the recent past in spite of the fact that most are currently on the rise once more reaching memorialise high values (Stevens, 2012). Therefore, in accordance to the Governors sentiments, this paper tries to evaluate whether the monetary decisions do by the Reserve Banks Board concerning the weakening economic state in the globe are appropriate to the inelegant 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 pol icies (Graziani, 2003). This actually involves the act of taking actions so that the interest rates which hits the economic activities in the country. It can be done through ensuring that money is available in the countrys overnight cash markets because 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 labor force, ensuring the countrys currency remains 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 peremptory the rates of inflation in the country (Mankiw, 2011). The Australian central bank uses a monetary indemnity that is referred to as inflation targeting which involves their maintenance of stable but low rates of inflation. This policy ha s widely been apply within the country with the belief 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(prenominal) policies that range from concepts monitoring their economic growths, crease 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 uppercase 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 resembling rates (King, 2011). In evaluating the growth the country is experiencing, the board of the Reserve Bank should examine their inves tment rates, their macrocosms 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