1.

What is Monetary Policy – RBA Australia 202012345

2. 12
https://www.rba.gov.au/education/resources/explainers/what-is-monetary-policy.html

- Objectives
- Decisions & Implementations

3. How RBA implements Monetary Policy

https://www.rba.gov.au/education/resources/explainers/how-rba-implements-monetary-policy.html

- Cash Rate Target

- Unconventional Monetary Policy Tools

4. Bridging the Textbook Gaps

https://www.rba.gov.au/education/resources/teacher-updates/bridging-the-textbook-gaps-on-how-the-
rba-implements-monetary-policy/#:~:text=The%20supply%20curve%20is%20often,over%20the
%20supply%20of%20cash.

- Understanding how the cash rate is managed

o Typical demand & supply in cash rate market
o Policy interest rate corridor
- How is the cash rate target changed?

5. The Transmission of Monetary Policy

https://www.rba.gov.au/education/resources/explainers/the-transmission-of-monetary-policy.html

- FIRST: monetary policy affects interest rates

- SECOND: interest rates affect economic activity (& inflation)
o Channels of Monetary Policy Transmission:
 Savings & Investment
 Cash-Flow Channel
 Asset Prices & Wealth
 Exchange Rate Channel

6. *Unconventional Monetary Policy

https://www.rba.gov.au/education/resources/explainers/unconventional-monetary-policy.html

- Conventional VS Unconventional (5 methods: e.g., asset pricing – Quantitative Easing)

o RBA’S Balance Sheet: https://www.abs.gov.au/articles/government-and-reserve-
bank-financial-balance-sheets-during-covid-19#reserve-bank-of-australia