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Probabilistic interest rate setting with a shadow board: A description of the pilot project

Author

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  • TIMO HENCKEL
  • SHAUN VAHEY
  • LIZ WAKERLY

Abstract

This study aims to assess the scope for monetary policymakers to aggregate probabilistic interest rate advice. The members of a Shadow Board give probabilistic assessments of the appropriate (target) interest rate for Australia in real time. The pilot project will be running each month from August to December (inclusive) 2011, with the Shadow Board giving advice shortly before each decision by the Reserve Bank of Australia (RBA) Board.

Suggested Citation

  • Timo Henckel & Shaun Vahey & Liz Wakerly, 2011. "Probabilistic interest rate setting with a shadow board: A description of the pilot project," CAMA Working Papers 2011-27, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2011-27
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2021-06/27_henckel_vahey_wakerly_2011.pdf
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    References listed on IDEAS

    as
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