Wouldn't regulations achieve that as well? It is still requiring a change in business processes, which could in itself lead to innovation... There's still a need for innovation there.
What was stated above plus explain how DMOs work - i.e. when the government buys securities, they inject money into the money market, increasing liquidity - lower cash rate because money supply increases
In the balance of payments, if export revenue exceeds import revenue, then the BOGs will improve and the Australian dollar will appreciate (as the demand for the Australian dollar will be increasing to purchase Australian exports). This appreciation of the Australian dollar will have a positive impact on Australia's external stability. This is because, according to the valuation effect, an appreciation will reduce the value of Australia's debt.
You could possibly say that since market based policies can be taxes, they generate revenue for the government - and the government can direct this revenue to other solutions to address environmental problems.
The RBA's first priority under the RBA Act 1959 (Cth) is to maintain price stability, meaning that they must ensure sustainable inflation. Inflation targeting is the RBA's goal of maintaining inflation between 2-3% over the business cycle, established in 1993 and formally agreed to in 1996 in the First Statement of the Conduct of Monetary Policy. Since the implementation of inflation targeting, Australia has seen sustained inflation within this 2-3% bracket; albeit rising out of the target band with the introduction of the GST and prior to the GFC. By maintaining inflation at this sustained level, they clearly have kept prices stable. Without this inflationary targeting, inflation can reach unstable levels, resulting in the volatility of prices; noted in the 70s and 80s with inflation being >10%. In this way, inflation targeting is central to the RBA's objective of price stability.
add in the idea of non inflationary sustainable growth I think thats the point ur trying to make
Depreciation of exchange rate, budget deficit, CAD and Protection
Besides what you have mentioned, I will also bet on fiscal/monetary policy questions and policy mix etc
Something along the lines of "assess the effectiveness of a budget deficit/surplus in addressing Australia's economic climate"
