RBA cuts interest rates (2 Viewers)

[Captain Hero]

um yep.

Are you serious? He nationalised the industry and controlled the population. Authoritarian lefty if there ever was one. National fucking Socialism what more do you need, sunbeam.

Everything evil ever has come from the Left and must be destroyed. May God almighty have mercy on you.

 

[chicky_pie]

ah conservatives,

still holding onto their pro-gun, pro-life, homophobic values.

Wrong, Howard was the one who outlawed guns in Australia.

*remembers that image of Howard with a bullet-proof vest announcing it in front of pro-gun lovers*

 

[wagga]

Irresponsible move from Rudd IMO. This will send petrol prices through the roof and hurt working families.

 

[Captain Hero]

Irresponsible move from Rudd IMO. This will send petrol prices through the roof and hurt working families.

Yeah man the government really shouldn't keep controlling interest rates like that!

 

[barbecuedflava]

Irresponsible move from Rudd IMO. This will send petrol prices through the roof and hurt working families.

what? the gov has nothing to do with interest rates, its the rba which influences the cash rate

whats rudd got to do with it, he cant change interest rates

plus wouldnt working families feel a bit of relief as rates have gone down, and they will pay less on their mortgages?

 

[BackCountrySnow]

Irresponsible move from Rudd IMO. This will send petrol prices through the roof and hurt working families.

The only politician who thinks he can influence the RBA is Brendan Nelson.

 

[Silver Persian]

he was absolutely a rightie.

early 1930's they were living in the middle of a 'red scare'. if you wanted the lefties that would've been the KPD

Now might be the time to stop having a circular non-getting-anywhere conversation and point out that Left and Right wing politcs, as usually understood, have both economic and cultural characteristics. hitler = economic leftie, cultural rightie

 

[Piyom]

the RBA today cut interest rates by a quarter of a percent but i dont understand why. correct me if im wrong, but i learned that loosening monetary policy doesnt fight inflation, tightening it does. isnt inflation a big problem right now? if so, why is the RBA cutting interest rates? even if the economy is slowing, shouldnt inflation be a more important priority?

The RBA has reduced the interest rate to stimulates economic activity not to fight inflation anymore.
There has been a significant declined in economic growth recently and therefore the RBA has cut interest rates (Loosened) to generate a reasonable economic growth and to avoid plungung into recession. I hope that help u, peace...

 

[wagga]

what? the gov has nothing to do with interest rates, its the rba which influences the cash rate

whats rudd got to do with it, he cant change interest rates

plus wouldnt working families feel a bit of relief as rates have gone down, and they will pay less on their mortgages?

The only politician who thinks he can influence the RBA is Brendan Nelson.

I was being sarcastic, I thought the petrol prices quip would have made that quite obvious. John Howard also seemed to think he could influence interest rates, with his infamous 'rates will always be lower under a coalition gov't' remark. However, Swan's short sited 'inflation genie' comment didn't do anything to help the inflation problem.

 

[wagga]

he was absolutely a rightie.

early 1930's they were living in the middle of a 'red scare'. if you wanted the lefties that would've been the KPD

On a more serious note, if you look at the left - right political paradigm, with communism being the most extreme left wing system, fascism for the right, both are essentially collectivist and totalitarian. At the extreme, the two converge to a large extent, which shows the limitations of boxing political beliefs onto a left - right spectrum. For example, libertarianism doesn't really fit into either left or right wing categories.

 

[Cookie182]

AD = y = GDP = (C + I + (G-T) + (X-M))

Yea well-

C= a + bYD

and YD= Y - NT

and NT= tY

Therefore, C= a + b(Y - tY)

C= a + b(1-t)Y

Now, M equals the Marginal Propensity to Import (m) x Y Therefore, mY

Substituting into AE-

AE= a + b(1-t)Y + I + G + X - mY
= a + I + G + X + b(1-t)Y - mY
= a + I + G + X + [b(1-t) - m]Y

Now, a + I + G + X are components of AUTONOMOUS EXPENDITURE (A)= assumed to be independent of changes in real GDP. C and M are considered to be dependent upon the level of real GDP and deemed INDUCED EXPENDITURE.

Therefore, AE= A + [b(1-t) - m]Y

Now when Eq'm Expenditure occurs, Aggregate Planned Expenditure (AE) equals Real GDP (Y). Therefore, AE=Y

Y= A + [b(1-t) - m]Y

Rearranging-

Y= 1/1- [b(1-t) - m] x A

Therefore, a change in A causes a 'multiplied' change in Y and 1/1- [b(1-t) - m] is the size of the multiplier. As this is the slope of the Aggregate Expenditure Curve, the steeper the curve the larger the multiplier.

Hence, the multiplied effect is larger the greater our MPC (b), the smaller the Marginal Tax Rate (t) and the smaller the MPI (m).

Keynes was a fucking genius!

 

[shakky15]

Yea well-

C= a + bYD

and YD= Y - NT

and NT= tY

Therefore, C= a + b(Y - tY)

C= a + b(1-t)Y

Now, M equals the Marginal Propensity to Import (m) x Y Therefore, mY

Substituting into AE-

AE= a + b(1-t)Y + I + G + X - mY
= a + I + G + X + b(1-t)Y - mY
= a + I + G + X + [b(1-t) - m]Y

Now, a + I + G + X are components of AUTONOMOUS EXPENDITURE (A)= assumed to be independent of changes in real GDP. C and M are considered to be dependent upon the level of real GDP and deemed INDUCED EXPENDITURE.

Therefore, AE= A + [b(1-t) - m]Y

Now when Eq'm Expenditure occurs, Aggregate Planned Expenditure (AE) equals Real GDP (Y). Therefore, AE=Y

Y= A + [b(1-t) - m]Y

Rearranging-

Y= 1/1- [b(1-t) - m] x A

Therefore, a change in A causes a 'multiplied' change in Y and 1/1- [b(1-t) - m] is the size of the multiplier. As this is the slope of the Aggregate Expenditure Curve, the steeper the curve the larger the multiplier.

Hence, the multiplied effect is larger the greater our MPC (b), the smaller the Marginal Tax Rate (t) and the smaller the MPI (m).

Keynes was a fucking genius!

maths equivalent of the guy hu rote the essay a few pages back. GTFO

and besides.... how does that answer the OPs question?

 

[TacoTerrorist]

Are you serious? He nationalised the industry and controlled the population. Authoritarian lefty if there ever was one. National fucking Socialism what more do you need, sunbeam.

Everything evil ever has come from the Left and must be destroyed. May God almighty have mercy on you.

Hitler was extremely right wing. Imperialistic, racist and militaristic. Right wing all the way.

 

[wrong_turn]

im an eco major oh fuck this thread is a nightmare....

im getting the fuck out....

 

[Cookie182]

maths equivalent of the guy hu rote the essay a few pages back. GTFO

and besides.... how does that answer the OPs question?

It is has absolutely no relevance whatsoever. But I do have my midsession tommorow, and hence unleashed on the forum as a study tool.