Lecture : Introduction to money and the
• Why Study Money, Banking, and Financial
Markets? (Ch. 1)
• An Overview of the Financial System (Ch. 2)
• What is Money (Ch. 3)
Preamble: Understanding the news
• Tuesday, 2 February 2021. The Reserve Bank of Australia
– “the Board decided to maintain the targets of 10 basis points for the cash rate
and the yield on the 3-year Australian Government bond, as well as the
parameters of the Term Funding Facility. It also decided to purchase an
additional $100 billion of bonds issued by the Australian Government and
states and territories when the current bond purchase program is completed in
mid April. These additional purchases will be at the current rate of $5 billion a
– Link: https://www.rba.gov.au/media-releases/2021/mr-21-01.html
• Why the RBA decided to keep the interest rate unchanged? Why it
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