“Australia saw deflation for the first time in seven years in the first quarter, as falling petrol, food, and clothing prices drove down the cost of a basket of goods and services.” (Mulligan, 2016) The Reserve Bank of Australia having prolonged deflation through low interest rates to the point of almost zero, market participants are demanding through market … Continue reading Deflation Down Under, RBA Kanagroos Kick For Lower Rates!
Interest is a market participants preference valuation of present goods to future goods. In which one would prefer $10 now rather than $10 in a months time. The monetary unit here ascribes itself to the lenders compensated assurance of placing a premium on present goods, one would prefer $10 now rather than $10 in a … Continue reading A Billion Dollar Time Premium
The Reserve Bank of Australia (RBA) was created by the Reserve Bank Act 1959 as “Australia’s central bank, which is responsible for managing the Commonwealth’s monetary policy, ensuring financial stability, and printing and distributing currency.” (Reserve Bank of Australia, 2011) This article in explaining the premise of the RBA and monetary policy will consider … Continue reading Monetary Policy and the Reserve Bank of Australia