Monetary Policy Mind Map

Monetary Policy Mind Map

1. Objectives

   • Full employment
   • Price stability
   • Economic growth

2. Financial sector

   • Financial markets
     • Intermediary between savers and investors (lenders and borrowers of funds)
     • Loan markets
     • Bond markets
     • Share markets
   • Money
     • Means of exchange
     • Unit of measure
     • Store of value

3. Refers to the interest rate decisions taken by the RBA to affect monetary and financial conditions within the economy, with the aim of achieving low inflation and sustainable economic growth.

4. Interest rates

   • Vary
     • Risk
     • Maturity
     • Time
   • Distinguish
     • Nomial interest rates
     • Real interest rates
   • Represent
     • The price of credit
     • The reward for saving