Project Details
Project Description
The project will examine optimal monetary policy rules for the Reserve Bank of Australia to implement when conducting monetary policy.
This work is designed to be used as an input into the current review into the Reserve Bank of Australia which is considering whether to change how the Reserve Bank of Australia conducts monetary policy. The prime methodology will be to use the RBA’s model MARTIN to estimate policy rule counterfactuals and impulse response functions to a variety of shocks. Given the timeline of the review this project will aim to be relatively timely completed in a timely manner with hopefully a working paper out by the end of the year. We expect to be able to calculate the expected welfare loss from a variety of monetary policy rules including inflation targeting, price level targeting, nominal GDP targeting and make recommendations as to the relative merits of the various rules.
This work is designed to be used as an input into the current review into the Reserve Bank of Australia which is considering whether to change how the Reserve Bank of Australia conducts monetary policy. The prime methodology will be to use the RBA’s model MARTIN to estimate policy rule counterfactuals and impulse response functions to a variety of shocks. Given the timeline of the review this project will aim to be relatively timely completed in a timely manner with hopefully a working paper out by the end of the year. We expect to be able to calculate the expected welfare loss from a variety of monetary policy rules including inflation targeting, price level targeting, nominal GDP targeting and make recommendations as to the relative merits of the various rules.
Short title | Optimal Policy Rules |
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Status | Finished |
Effective start/end date | 18/10/22 → 15/12/22 |