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Fonda Boulay
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The first Australian textbook on regional anaesthesia was published in 1948 by a surgeon, Dr Cyril Corlette. He was 80 years old at the time but had lectured, published and strongly promoted regional anaesthesia his whole career. He was a renowned teacher and a Founder of the Royal Australasian College of Surgeons. He also published controversial work on heat loss under anaesthesia and anaesthetic mortality. This textbook, "A Surgeon's Guide to Local Anaesthesia", subtitled "A Manual of Shockless Surgery", helped to promote the concept of regional anaesthesia in Australia.
One of the most commonly asked questions by educators has been about how the Reserve Bank ofAustralia (RBA) implements monetary policy. In particular, they are interested in understanding howclosely the actual process of monetary policy implementation matches the typical textbookexplanation. Practice differs from theory and there are some gaps in the explanations provided bythe typical textbook. This article aims to bridge these gaps by providing a stylised but morecomprehensive explanation of the process. It will also describe how the introduction ofunconventional monetary policy tools following the onset of the COVID-19 recession has affectedthe process.
It is commonly described in textbooks that a policy interest rate is managed by a nation's central bankthrough the use of open market operations (OMOs).[2]These operations involve the central bank buyingand selling bonds (typically government bonds) to inject cash into and withdraw cash from the financialsystem to influence the cash rate.
This article reconciles how the RBA has typically managed the cash rate in the past with standardtextbook descriptions. It will explain the workings of the policy interest rate corridor and the use ofOMOs to manage the supply of cash (liquidity) to keep the cash rate within this corridor and at target.It then describes how the RBA's policy actions following the onset of the COVID-19 recession hasaffected this process.
The typical textbook explains that if the central bank wanted to raise the cash rate, it would do so bywithdrawing cash from the system, decreasing the supply and quantity of cash available from S to S1(Figure 2). This in turn would place upward pressure on the cash rate (from r to r1) to reach a newequilibrium. Conversely, if the central bank wanted to decrease the cash rate, it would increase thesupply of cash from S to S2. This would place downward pressure on the cash rate (from r to r2).(See Table 1 for a summary of the relationships.)
Typical textbook analysis shows that the shift of the supply curve for cash is achieved through OMOs.When the central bank sells bonds to banks and receives cash (in return for bonds), it reduces the supplyof cash in the market. Conversely, when the central bank buys bonds from banks and provides cash(in return for the bonds), it increases the supply of cash in the market.
Typical textbook analysis generally describes the central bank's OMOs as the direct buying and sellingof government bonds. When the central bank buys bonds, it injects cash into the financial system(as banks' ES accounts are credited with cash in return for bonds)[6]When the central bank sells bonds,it withdraws cash from the financial system (as banks' ES accounts are debited to pay for bonds).
The RBA's implementation of monetary policy is an area of confusion for professionaleconomists, commentators and educators alike, particularly in reference to how closely theactual process aligns with the standard textbook explanations. The two main gaps in typicaltextbook explanations relate to:
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While candidates may find it useful to review the major textbooks in the key clinical disciplines, the questions in the MCQ examination are oriented towards the more common clinical applications, differential diagnosis and therapeutics, and candidates should take care when using major reference type textbooks. The AMC has drawn up a guide to some useful texts. These textbooks, listed below, will provide background reading on key topics and contain a great deal of reference material. They are not intended as prescribed reading.
There are many medical textbooks available and most of them are of high standard. They range from quite short texts, which cover essential knowledge, to long and comprehensive treatises which most people use as reference books. The AMC has drawn up the following list as a guide to some useful texts. They are not intended as prescribed reading.
AMC Examinations are set on the latest editions of the recommended textbooks. It is up to the AMC candidate to obtain the latest information. Material contained in previous editions of the recommended textbooks, or other unspecified textbooks, may not be correct and will not be used to determine the result of AMC Examinations.
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