1. Introduction
Inflation in Australia remains increasingly high in recent periods despite the tight monetary policy circumstances and moderate growth of Australian economy. What further policy the RBA will carry out, how it works to control this inflation and what foreign trade and current account will change has become a hot issue. Our report will discuss three excerpts from ANZ Economic Outlook Sept quarter 2008 and try to:
1. Analyse why inflation is the RBA’s top priority and how ‘global force’ has been transmitted
2. Explain how the current macro policy is working and the main argument about the “right policy” to contain inflation;
3. Detail the factor which may sustain a trade surplus and state the impact of this improvement on the Capital and Financial Account and Australia’s International position.
2. Discussion of excerpt A
i. Why Inflation remains the RBA’s top priority
a) Inflation is significant during the year
As the central......
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Approximate Word Count: 3207
Approximate Pages: 13 (260 words per double-spaced page) |