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Reforming Australian Monetary Policy: How Nominal Income Targeting Can Help Get the Reserve Bank Back on Track

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  • Kirchner, Stephen

    (Mercury Publication)

Abstract

This paper makes the case for the adoption of a nominal income targeting regime in the context of a new governance and accountability framework for the Reserve Bank of Australia. The paper begins by outlining the current governance and inflation targeting

Suggested Citation

  • Kirchner, Stephen, 2021. "Reforming Australian Monetary Policy: How Nominal Income Targeting Can Help Get the Reserve Bank Back on Track," Working Papers 10705, George Mason University, Mercatus Center.
    • Handle: RePEc:ajw:wpaper:10705
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    References listed on IDEAS

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    1. Warwick J. McKibbin & Augustus Panton, 2018. "25 Years of Inflation Targeting in Australia: Are There Better Alternatives for the next 25 Years?," CAMA Working Papers 2018-19, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Edda Claus, Mardi Dungey, 2015. "Can monetary policy surprise the market?," LCERPA Working Papers 0083, Laurier Centre for Economic Research and Policy Analysis, revised 01 Jan 2015.
    3. Kirchner, Stephen, 2018. "Money too tight to mention: The Reserve Bank of Australia’s financial stability mandate and low inflation," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 141-149.
    4. Svensson, Lars E.O., 2017. "Cost-benefit analysis of leaning against the wind," Journal of Monetary Economics, Elsevier, vol. 90(C), pages 193-213.
    5. David Beckworth & Joshua R. Hendrickson, 2020. "Nominal GDP Targeting and the Taylor Rule on an Even Playing Field," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(1), pages 269-286, February.
    6. Günes Kamber & James Morley & Benjamin Wong, 2018. "Intuitive and Reliable Estimates of the Output Gap from a Beveridge-Nelson Filter," The Review of Economics and Statistics, MIT Press, vol. 100(3), pages 550-566, July.
    7. Bruce Preston, 2020. "The Case for Reform of the Reserve Bank of Australia Policy and Communication Strategy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(1), pages 95-104, March.
    8. Harding, Don & Pagan, Adrian, 2002. "Dissecting the cycle: a methodological investigation," Journal of Monetary Economics, Elsevier, vol. 49(2), pages 365-381, March.
    9. Clarida, Richard & Gali, Jordi & Gertler, Mark, 1998. "Monetary policy rules in practice Some international evidence," European Economic Review, Elsevier, vol. 42(6), pages 1033-1067, June.
    10. Guy Debelle, 2018. "Twenty-five Years of Inflation Targeting in Australia," RBA Annual Conference Volume (Discontinued), in: John Simon & Maxwell Sutton (ed.),Central Bank Frameworks: Evolution or Revolution?, Reserve Bank of Australia.
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