Question 3 (i) - Monetary Policy in Australia - suggested words (300) (3 marks) The rapid spread of the Coronavirus pandemic has called for an urgent monetary policy response here in Australia and indeed in many other countries throughout the world. At the beginning of the pandemic here in Australia, the Reserve Bank of Australia (RBA) implemented a package of 4 monetary policy measures. See: https://www.rba.gov.au/speeches/2020/pdf/sp-gov-2020-03-19.pdf The following media release by the RBA outlines the most recent decision (August 2020) on monetary policy: https://www.rba.gov.au/media-releases/2020/mr-20-18.html (a) What is the current target for the cash rate in Australia? Describe the current stance of Australia's monetary policy. (b) Explain how the current stance on monetary policy is designed to influence the Australian economy to achieve its intended objectives of full employment (FE) and the 2-3% inflation target. Note: As a starting point, re-read Chapter 12 of Hubbard et al. (2018) and go over Week 8's resources on Monetary Policy in Moodle