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Write a short essay to explain why the official interest rate is currently higher in Australia than most other places. Include a discussion of the Global Financial Crisis (GFC) in your answer. Also, explain why the Board of the Reserve Bank of Australia has the scope, if necessary, to further cut the cash rate, Australia’s official interest rate. Remember to give references in your references list at the end of your assignment.
The Global Financial Crisis was characterized by a fall in aggregate demand. To counterthis, monetary easing measures were implemented in most of the developed countries. Thecentral banks of…
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