Once Jane understand the monetary policy framework in Singapore, he also would like to explore the monetary policy in Australia. Explain to Jane how the reserve bank of Australia implements the monetary policy. Use the data provided to plot the interest rates on 2-year commonwealth government bond and 10 year commonwealth government bond from January 2020. Determine the shape of the yield curve by using one of the theories you know and share your opinion on whether the Australian economy is heading for a boom or for a recession. Explain the choice.

F2.1 CAPITAL MARKET YIELDS - GOVERNMENT BUNDS Title Commonwealth Government 2 year bond Commonwealth Government 10 year bond Description Yields on Commonwealth government bonds, interpol: Yields on Commonwealth government bonds, 10 years maturity Frequency Monthly Monthly Type Original Original Units Per cent per annum Per cent per annum Source Yieldbroker Yieldbroker Publication date 01-Apr-2022 01-Apr-2022 Series ID FCMYGBAG2 FCMYGBAG 10 Jun-2013 2.58 3.54 Jan-2020 0.76 1.15 Feb-2020 0.70 0.98 Mar-2020 0.39 0.89 Apr-2020 0.22 0.86 May-2020 0.24 0.91 Jun-2020 0.26 0.92 Jul-2020 0.26 0.88 Aug-2020 0.26 0.89 Sep-2020 0.21 0.90 Oct-2020 0.13 0.82 Nov-2020 0.09 0.87 Dec-2020 0.09 0.98 Jan-2021 0.08 1.05 Feb-2021 0.10 1.32 Mar-2021 0.09 1.69 Apr-2021 0.07 1.65 May-2021 0.07 1.62 Jun-2021 0.04 1.52 Jul-2021 0.04 1.25 Aug-2021 0.02 1.12 Sep-2021 0.01 1.28 Jet-2021 0. 16 1.72 Nov-2021 0.56 1.81 Dec-2021 0.53 1.61 Jan-2022 0.72 1.88 Feb-2022 1.02 2.11 Mar-2022 1.34 2.50