Explainers

The 'Explainers' series provides more of an explanation about key economic concepts, the Australian economy and the role of the Reserve Bank.

The Transmission of Monetary Policy

Describes how changes made by the Reserve Bank to the cash rate – the ‘instrument’ of monetary policy – flow through to economic activity and inflation.

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How the Reserve Bank Implements Monetary Policy

Describes the Australian cash market and explains how the Reserve Bank ensures that the cash rate is as close as possible to its target.

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Australia's Inflation Target

Describes the inflation target, why the Reserve Bank targets inflation and how the target works.

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Inflation and its Measurement

Describes how inflation is measured, explains how different indicators of underlying inflation are calculated, and outlines some of the limitations of using the Consumer Price Index.

Explainer: Inflation and its Measurement 169KB

Exchange Rates and the Australian Economy

Explains how changes in the value of the Australian dollar affect economic activity and inflation in Australia, along with the nation's balance of payments.

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Exchange Rates and their Measurement

Explains the concept of an exchange rate, how exchange rates can be measured and the different types of exchange rate regimes that exist.

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Australia and the Global Economy – The Terms of Trade Boom

Discusses the causes of the terms of trade boom of 2005 to 2012 and explains the way in which it affected the Australian economy.

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The Global Financial Crisis

Summarises the main causes of the global financial crisis, how the crisis unfolded and how policymakers responded to it in Australia and abroad.

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