Central banks, above all, are responsible for overseeing financial stability and controlling inflation. This research note suggests that the poor governance arrangements, conflicting goals, grandiose aspirations and distractions, along with the excessive budget and lack of core expertise in key appointments, have created the current...

This report investigates the history of Australian inflation and policy choices, and provides a counter to the view that low inflation and the current inflation target is acceptable.

In this paper, the authors make a convincing case that stimulative monetary policy during the global COVID-19 pandemic contributed materially to the inflation surge that followed and which persists today. Equally important, they focus intensively on the various reasons that might have contributed to this...

The author of this paper argues that recent inflationary pressures have mostly supply-side origins, caused by the COVID-19 crisis, which have been enabled by poor macroeconomic policy choices.

In this paper, the authors examine the effect on government bond yields of three Reserve Bank of Australia policy measures implemented following the onset of the COVID-19 pandemic. They also assess the impact of the three measures on government bond market functioning.

Both major political parties support an external review of monetary policy after the 2022 election. This paper discusses some of the main issues a review should cover.

Inflation is rising around the world, the sting in the tail of the pandemic economic stimulus packages unleashed by governments in 2020. This analysis paper examines the implications for prices and wages growth in Australia.

High-quality central bank communication can improve the effectiveness of monetary policy and is an essential element in providing greater central bank transparency. This paper investigates three important aspects of central bank communication - audience, readability and degree of reasoning.

How monetary policy affects the economy is a central question in macroeconomics. Standard economic thinking predicts interest rate cuts boost economic activity. This idea has recently been challenged by claims that changes in monetary policy have a so-called ‘information effect’. Calvin He explores this concept...

This white paper aims to understand how varying economies have changed their monetary and fiscal policies to respond to the pandemic-induced economic crisis.

Monetary policy is not the answer to our economic problems; and central bank actions could be making matters worse. This paper outlines an argument that monetary policy in most advanced economies is suffering from overreach, and has been for much of the past decade.

The present paper addresses the question of how to estimate a social welfare function defined over inflation and unemployment that can help inform the policy decisions of central banks by providing a way to measure the well-being costs arising from macroeconomic fluctuations.

How damaging are uncertainty shocks during extreme events such as the great recession and the COVID-19 outbreak? Can monetary policy limit output losses in such situations? This paper outlines economic modelling for policymakers.

This paper examines how monetary policy affects housing prices across local areas. It also explores three related questions - How differently do housing prices respond to monetary policy across areas? What can explain these differences across areas? Does monetary policy cause changes in the housing...

Identifying the causal effect of monetary policy on inflation remains a challenge. Researchers frequently find evidence of a ‘price puzzle’: increases in the policy rate are followed by higher rather than lower inflation.

This analysis suggests that while some aspects of monetary policy in China are beginning to resemble those observed in advanced economies, convergence is neither likely nor even desired by the authorities, given China's institutional configuration and preferred model of economic development.

This report examines the US dollar’s global role and its implications for Australia. The report looks at the dollar’s global pre-eminence and how this has increased over time. It also examines the role of the US dollar as a “reserve asset”, arguing that this reserve...

This paper argues that monetary policy in Australia is no longer effective and the task of stimulating the economy should be taken up by more active fiscal policy leadership from the Australian government.

This report argues that quantitative easing (QE) is an operating instrument for policy, rather than a monetary policy as such. As with policy conducted via official interest rates, QE’s effectiveness depends on the policy framework in which it is located, as well as how the...

This report, which is the output of an academic workshop hosted in January 2019, is organized around five areas where neoliberalism provides incomplete or unsatisfactory policy guidance: growth strategies and industrial policy, inequality, finance and monetary policy, the environment, and power and politics.

Using monetary policy shocks for 7 advanced economy central banks, measured at high frequency, this paper documents the strength and characteristics of interest rate spillovers to 47 advanced and emerging market economies.

This speech, by Reserve Bank Deputy Governor, Guy Debelle, examines how climate change affects the objectives of monetary policy and some of the challenges that arise in thinking about climate change.

This review provides an opportunity to ensure that the Reserve Bank Act is fit for purpose and able to provide a strong, flexible, and enduring regulatory framework that enjoys broad public and industry support.

This thesis intends to investigate the asymmetric effects of monetary policy on regional prices within Fiji. The monetary policy shocks are generated by removing any systemic response to future economic conditions from the actual policy rate that is set by the Reserve Bank of Fiji...