![]() The RBA explicitly DOES NOT GUARANTEE financial stability.Īustralian Debt was founded in 2010, in light of the Global Financial Crisis to help inform Australians of our nations trending money, credit and debt levels (comparable to international trending debt levels, ie. Reserve Bank of Australia – Financial Stability | /fin-stability This helps to promote growth in economic activity. A stable financial system is one in which financial institutions, markets and market infrastructures facilitate the smooth flow of funds between savers and investors. ‘Maintaining the stability of the financial system is a longstanding responsibility of the Reserve Bank. Financial Stability of the Australian economy is a mandate of the RBA outlined on their website The Reserve Bank of Australia (RBA) publish the Financial Stability Review on a semiannual basis (April & October) to help provide insight across the forecast/actual and cause/effect of the stock and flow of money, credit and debt. Having a strategy that does not account for Financial Stability risk is unequipped to handle any future shocks to the Australian financial system. Understanding the trending environment of money, credit and debt is fundamental to an effective financial strategy for both business and households. Reserve Bank of Australia – Official Reserve Assets | /statistics/frequency/reserve-assets.htmlĪfter all, Gold is the only real asset on the RBA balance sheet outside of the confidence (albeit diminishing confidence).Īustralian Debt is dedicated to helping Australian’s expand their understanding of the role of money in the economy. ![]() In July 2018 the RBA had $2,698 million USD of Gold holdings as Official Reserves on their balance sheet, by July 2019 these holdings rose to $3,155 million USD. Most notably, in recent times the RBA has been increasing their Gold holdings in line with many Central Banks around the world. One of the easiest and most secure ways to invest in Gold is with GoldMoney that offer a secure digital solution for allocated physical Gold investment. Furthermore, Gold has performed extremely well under climates of economic uncertainty like the 2008 Global Financial Crisis. ![]() Historically money was backed by Gold in order to provide an anchor of scarcity to the money supply, but it has continued to hold value and withstand the test of time since President Nixon formally ended the Gold Standard in the 1970s.įederal Reserve Bank – History | Gold investment is a proven solution to wealth protection under this unanchored economic system with diminishing confidence. Morgan testimony to Samuel Untermeyer, chief counsel of the Pujo Sub-Committee of the House Committee on Banking and Currency (US Congress) – Decem| /research/goldmoney-insights/what-did-jp-morgan-mean It is fair to say that each individual cryptocurrency has a limited supply on its own network, there is no limit to the supply of networks.Ī tried and tested anchor for the monetary system has always been Gold. While underlying blockchain of these solutions most definitely adds value to trust and accountability in the macro or micro economics system, their fundamental problem is that the currency is still not backed by any anchor of scarcity. Naturally the common Central Bank strategy of monetarism has come under increasing scrutiny over since the Global Financial Crisis of 2008 and in the following years as the debt levels have become more and more unsustainable.īitcoin and other cryptocurrency frameworks have proposed alternatives to this fiat currency system. Reserve Bank of Australia – Monetary Policy | /monetary-policy Controlling inflation preserves the value of money and encourages strong and sustainable growth in the economy over the longer term. To achieve these statutory objectives, the Bank has an ‘inflation target’ and seeks to keep consumer price inflation in the economy to 2–3 per cent, on average, over the medium term. In determining monetary policy, the Bank has a duty to maintain price stability, full employment, and the economic prosperity and welfare of the Australian people. The cash rate influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, economic activity and ultimately the rate of inflation. Monetary policy involves setting the interest rate on overnight loans in the money market (‘the cash rate’). The Reserve Bank is responsible for Australia’s monetary policy. The RBA outlines Monetary Policy on their website as Click here for more information on the Australian money supply. The Reserve Bank of Australia (RBA) use Monetary Policy to manipulate the money supply to support debt levels through the production of fiat currency (a framework known as monetarism pioneered by Milton Friedman). The money behind and backing this debt, that ultimately supports the repayments and continuity of the system, is effectively unanchored and merely backed by confidence.
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