Question

What should the RBNZ do to avoid any risk of increasing inflation? Should the OCR be...

What should the RBNZ do to avoid any risk of increasing inflation? Should the OCR be decreased by more or less than the change implied by the average of model predictions?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

To decrease the Risk of inflation RBNZ has to increase statutory Liquid ratio ,Open market operations By federal bank, Cash reserve ratio ,bank rate are some of the way by which the availability of cash for creating credit with the bank is less and consequently economy will have less availability of cash and bank rate will cause the money to get at costlier price on credit than the earliar . which will solve the issue of inflation and decrease it .

OCR (official cash rate ) Should be less decreased by change implied by model of prediction.

Hope you Like Answer Hit Thumbs up and Give us feed back . Ask your Doubts in comments on Problem if any.

All the best Friends for your examination and most welcome

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
. What should the RBNZ do to avoid any risk of increasing inflation? Should the OCR...
. What should the RBNZ do to avoid any risk of increasing inflation? Should the OCR be decreased by more or less than the change implied by the average of model predictions?
1. What effect do increasing inflation expectations have on the required returns of investors in common...
1. What effect do increasing inflation expectations have on the required returns of investors in common stock? 2. Explain the specific relationship between risk and reward and why this relationship must be true.
what is your opinion? what do you think? Comment on it I have experienced price inflation...
what is your opinion? what do you think? Comment on it I have experienced price inflation buying gasoline. I paid on average of 10 % per gallon in Jan 2020 than January 2019. In my opinion, I am expecting inflation rates on average over the next 20 years to be around 2% I believe 5% rate of return will be enough to defeat cost of average inflation and tax. Borrower benefits as it needs to pay back money that is...
What is the risk of creating inflationary pressures in the economy by following the average of...
What is the risk of creating inflationary pressures in the economy by following the average of model predictions?
What is the risk of creating inflationary pressures in the economy by following the average of...
What is the risk of creating inflationary pressures in the economy by following the average of model predictions?
If someone argues that increasing money supply is the only factor that causes inflation, do you...
If someone argues that increasing money supply is the only factor that causes inflation, do you agree with this argument? If yes, please explain how money supply results in inflation. If no, what are other factors that can result in inflation? And how do they influence inflation?
To avoid electrical fires, wirings must be sufficiently thick. What should be the diameter of a...
To avoid electrical fires, wirings must be sufficiently thick. What should be the diameter of a Cu wire if it is to carry a maximum current of 30.0 A and produce no more than 1.2 W of heat per meter of length?
What should you do to avoid virtual conflicts? Sometimes conflicts can be really nice, why?
What should you do to avoid virtual conflicts? Sometimes conflicts can be really nice, why?
Should you invest in any bond funds? There's low inflation in the U.S. economy at this...
Should you invest in any bond funds? There's low inflation in the U.S. economy at this time. Why do you think that's the case?
The author states, “In short, if there is any hint of sustained inflation at this stage...
The author states, “In short, if there is any hint of sustained inflation at this stage of the business cycle -- with low unemployment threatening to go lower with fiscal stimulus -- past behavior indicates the Fed will risk and accept a recession before it allows a truly high inflationary environment to develop. That means your medium-term risk is more recessionary than inflationary.” Explain that statement.?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT