Essays on Why the Reserve Bank of Australia Restricts its Trading Transactions to the Government Case Study

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The paper "Why the Reserve Bank of Australia Restricts its Trading Transactions to the Government" is a good example of a micro and macroeconomic case study.   The Reserve Bank of Australia came into existence on January 14 1960, as the central bank of Australia (Kent & Robson, 2010). It was established under the Reserve Bank Act 1959 when the central banking functions were removed from the commonwealth bank. The Reserve Bank of Australia has a relationship with the Australian government that is set out by section 11 of the Reserve Bank Act 1959 (Kent & Robson, 2010).

The board is given substantial independence, and this is balanced by the obligation placed upon it by the Act, to inform the government of its policies on timely bases to get parliament accountability (Stevens, 2007). The Reserve Bank of Australia provides services to the government of Australia, other official institutions and other central banks. The members of the payment system and reserve bank board consists of the members from the treasury, leaders of other institutions regarded to be part of the economy, Australian government agencies and the bank itself (Kent & Robson, 2010).

This paper reviews some of the roles of the Reserve Bank of Australia started in the Reserve Bank Act 1959. The paper reviews the reasons why the Reserve Bank of Australia restricts its trading transactions to the government and semi-government securities, mostly focusing on the intention of making sure its monetary and banking policy is meant to help the Australian citizens. The Reserve Bank of Australia is given the responsibilities of providing banking services to the Australian government, hence the reason why it restricts its trading transactions with the government and semi-government securities (Kent & Robson, 2010).

The boards of the bank, which include the payment systems board and the Reserve Bank board, consists of members of Australian government agencies, and other leaders of institutions in the economy of Australia (Coppel & Connolly, 2003). The bank is assigned with the role of making sure the currency of Australia is stable and there is full employment in Australia.  

References

Becker, C., & Sinclair, M. (2004). Profitability of reserve bank foreign exchange operations: twenty years after the float. Reserve Bank of Australia.

Berkelmans, L. (2005). Credit and monetary policy: An Australian SVAR. Reserve Bank of Australia.

Coppel, J., & Connolly, E. (2003). What do financial market data tell us about monetary policy transparency?. Reserve Bank of Australia.

Kelly, P. (2000). The Politics of Economic Change in Australia in the 1980s and 1990s. In RBA Annual Conference Volume. Reserve Bank of Australia.

Kent, C., & Robson, M. (2010). Introduction to Reserve Bank of Australia 50th Anniversary Symposium. In RBA Annual Conference Volume. Reserve Bank of Australia.

Stevens, G. (2007). Reserve Bank of Australia. Education, 9, 4-0.

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