Recent OCR (Official Cash Rate) in NZ.

 

Conduct research on the recent OCR (Official Cash Rate) in NZ. Write an essay to explain the OCR rate movements since the beginning of 2020 and demonstrate your understanding of the importance of the OCR rate. Justify your arguments with evidence and quality references.

Incorporate the following questions into your discussion. Note these are perspectives that you should build into your discussion, but you should not present the essay in a question-answer format. A standard essay format should be adopted.

What is the current OCR rate? Has it changed from the beginning of the year?

Discuss the OCR trend from the beginning of 2020. Explain the government’s underlying rationale for any change in the OCR rate. How many changes were made and what were the reasons for the changes?

Explain clearly how the OCR changes impact the macroeconomic environment.

Do you think it is likely that the OCR rate will change again within this year? Why?

 

Sample Solution

Recent OCR (Official Cash Rate) in NZ

The cash rate is the market interest rate for overnight loans between financial institutions. It serves as a benchmark for interest rates at which funds can be lent or borrowed in financial markets, including for different sources of bank funding, such as wholesale debt and deposits. What is the current OCR rate in NZ? Official cash rate on hold at 0.25 percent – Reserve Bank of New Zealand. The Monetary Policy Committee agreed to retain the current stimulatory level of monetary settings, keeping the OCR at 0.25 percent for now. The decision was made in the context of the Government`s imposition of Level 4 COVID restrictions on activity across New Zealand.

“was taken into a room, made to kneel, then shot in the back of the head with a large caliber handgun so his face would be made unrecognizable” (1). Ames was paid thousands of dollars for his work, which he splurged on expensive items such as Rolex watches and clothes for his wife. Though he was aware that the people he was betraying to the Soviets were most likely to be executed, Ames had no qualms – it was either they or he. Of his spying Ames said, “It wasn’t personal. It was simply how the game was played” (3). Though Ames was charged with espionage and sentenced to life in prison, his actions were certainly treasonous as he helped the Soviets execute American spies. Ames’ example shows that there are people who want to hurt America, and the government should be vigilant in pursuing them.

Treason is not a forgotten crime from another era, but a serious offense that still matters today. In the Los Angeles Times article, “Videos Lead to Treason Charge” by Greg Krikorian and Richard B. Schmitt on October 12th, 2006, a man from Southern California who converted to Islam was charged with treason – the first time this has happened since the World War II era (1). The article explains that Adam Yahiye Gadahn, was accused of giving “aid and comfort to Al Qaeda” (1) by appearing in propaganda videos for the terrorist organization. In his videos, Gadahn says that he had “joined a movement waging war on America and killing large numbers of Americans” (1), and that the September 11th attacks “notified America that it’s going to have to pay for its crimes and pay dearly” (1). Gadahn’s insidious actions fit the Constitution’s requirements for treason since he is “levying war” against the country and aiding the enemy with their videos. His case explains that anti-treason statutes are still necessary in the modern world, even though only a handful of people have been convicted in the United States. Gadahn is not simply protesting American policy, but advocating the deaths of innocent Americans. People like Gadahn who seek to hurt Americans should be the ones charged with treason, not mere protestors expressing their freedom of speech.

Some believe dissent is equivalent to treason as it encourages the enemy. Because the United States is a representative democracy, policymakers must respect the will of the people, or else be voted out. Knowing this, enemies could intensify their attacks to force Americans to rise up and force a withdrawal from combat. By protesting against American policy, dissenters commit treason by showing that the country is divided, and thus give “comfort and aid” to the enemy. The Vietnam protests are an example of this, as cases where protestors waved North Vietnam flags and chanted “Ho Chi Minh” did not help troop morale. In fact, the protests seemed to make the war worse. The North Vietnamese launched the Tet Offensive for this reason – while it was militarily ineffective, it turned the American public against the war. But while those protestors disagreed with the government’s reason for war, they weren’t deliberately supplying the enemy with tactical details or strategies that could have helped the enemy kill more soldiers. This is true with modern day protestors, who try to make the distinction between supporting the troops and disagreeing with government policy. While protestors may be “unpatriotic” for disagreeing with the government in time of war, they aren’t traitors.

In other countries where dissent is considered treason, liberty is restricted. In China, the repressive government prevents people from disagreeing with state policy, and punishes those who do. A classic example of this is the Chinese government’s suppression of pro-democracy protests in Tiananmen Square in 1989. By putting a halt to these dissenters, China’s leaders held onto power but stifled attempts at democracy. Even in the Internet age, China still limits the people’s ability to speak out. According to the BBC News article, “Google censors itself for China,” Google prevents searchers from finding links to the Tiananmen Square massacre on the Chinese version of the search engine. With an authoritative government, China’s leaders can act unchecked, allowing for human rights’ abuses and extreme poverty in the country. Accusing protestors of treason would put the United States in the same league as China – a government that restricts personal liberty and the freedom of speech.

Americans have the right to disagree with their government without being accused as traitors. No matter what political rhetoric may be thrown at protestors, dissent is legal and should remain that way. For those who do protest, they should take heart that some consider dissent not treason, but the highest form of patriotism

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