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Rba were to implement a simple rule

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Reference no: EM13150337 , Length: 200 words

How would two of the RBA's policy objectives are conflicting? Please give an example. Which of the goals would the RBA most likely to emphasis? Why would central bank independence ensure that the RBA's primary objective is met? 
Suppose the RBA were to implement a simple rule for monetary policy, such as one that makes the monetary aggregate M3 rise at a steady rate of 3% per year. When would this rule work and when would problems occur with such a rule?

Reference no: EM13150337

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