You are required to prepare a report addressing the criteria below in accordance with the AIB assessment guide and style guide requirements.
The report structure must include the following sections:
- Executive summary
- Main body
You are required to select a central bank – Singapore - Monetory Authority Singapore
Your report must address the following:
- Discuss the role of a central bank in a country, particularly in implementing monetary policy. Comment on any regulatory requirements imposed on the central bank in performing their responsibilities.
- Comment on the current economic environment (inflation and interest rates) of your selected country, monetary policy employed by the central bank, and effects of those monetary policies on financial markets including asset values and yields.
- In the article the Australian Treasurer Scott Morrison argues ‘that in a world of low, and in some cases negative, rates, monetary policy has ‘exhausted its effectiveness’ and ‘its ability to impact and influence is diminishing’. Further, ‘while not questioning the RBA’s independence, Mr Morrison believes that that the effectiveness of central bank rates has been exhausted’. Do you agree with Mr Morrisons comments that central bank effectiveness has been exhausted? Your answer should relate to the selected country and supported with relevant research.
- Australia remains exposed to global issues that make monetary policy and budget repair increasingly difficult – with the fallout from Brexit and the US presidential election likely to cause more volatility on global markets. Identify and explain whether global issues make monetary policy and budget repair difficult in the selected country.
- Identify and discuss how Authorised Deposit Institutions (ADIs) deal with credit, liquidity, operating and interest rate risks in the selected country. Comment on how the Basel Accords help deal with these risks.