Implementation of Monetary Policy (1 Viewer)

[moon_princess]

Hi, dixon says the 2 main approaches to implementing the monetary policy is monetary targeting and rate-setting monetary. Whereas, riley is explaining it with policy interest rate corridor and open market operations (OMOs). Which one should i be aware of? Is riley going wayyyy too in depth and would knowing dixons basic overview be enough? If anyone could let me know which one they have been taught by their school teachers, it would be appreciated! My economics teacher is not a proper economics teacher so he doesn't know anything about it, unfortunately.

 

[thinkinghard]

I would rely on Dixon for the basic knowledge but, remember there is unconventional monetary policy which is very helpful to understand for a band 6. A factsheet on unconventional monetary policy types can be found on the RBA website.

 

[Fabrizio]

I personally do it as cash rate corridor and then DMO's for liquidity managament inresponse to changes in demand and supply of money to keep the cash rate from not devaiting outside of the target range

 

[SpecterLitt]

corridor policy, read it on the RBA website