RBA Annual Conference – 2025 Monetary and Fiscal Policy Interactions

Final versions of the Conference papers and discussions will be published at a later date.

The Reserve Bank of Australia’s Annual Research Conference, this year organised jointly with Treasury, brought together economists from think tanks, public sector, academia, and various other central banks and international institutions to discuss the interactions between monetary and fiscal policies. This included the distributional implications of monetary and fiscal policies, potential constraints on monetary and fiscal policy, and the fiscal implications of unconventional monetary policies. The Conference concluded with a Panel Discussion that considered monetary and fiscal policymaking in practice.

The Conference was conducted under the Chatham House rule.

Draft Papers

Session One: Monetary and Fiscal Interactions Keynote Address

• Rowing Together: Lessons on Policy Coordination from American History
  (presentation) 653KB
  Presenter: Christina D Romer, University of California, Berkeley
  (this address is not currently available)

Session Two: Distributional Implications of Monetary and Fiscal Policies

• Fiscal-Monetary Interactions in the 2020’s: Some Insights from HANK Models
  (presentation) 1.04MB
  Presenter: Greg Kaplan, University of Chicago and e61 Institute
  Download 847KB
• Progressive Taxation and Monetary Policy in Australia
  (presentation) 419KB
  Presenter: Ekaterina Shabalina, Reserve Bank of Australia
  Discussant: Sushant Acharya, University of Melbourne
  (this paper is currently not available)
• A Social Insurance Perspective on Pandemic Fiscal Policy, and Implications for Monetary Policy (presentation)
  Based on A Social Insurance Perspective on Pandemic Fiscal Policy: Implications for Unemployment Insurance and Hazard Pay
  Presenter: David H Romer, University of California, Berkeley
  Discussant: Roger Wilkins, Melbourne Institute
  Download 123KB

Session Three: Constraints on Monetary and Fiscal Policy

• Fiscal R-Star: Fiscal-Monetary Tensions and Implications for Policy
  (presentation) 1.63MB
  Presenter: Marijn A Bolhuis, International Monetary Fund
  Discussant: Rachael McCririck, Australian Treasury
  Download 1.37MB
• The Fragility of Government Funding Advantage
  (presentation) 9.1MB
  Presenter: Jonathan Payne, Princeton University
  Discussant: Coletta Frenzel Baudisch, Deutsche Bundesbank
  Download 6.01MB

Session Four: Fiscal Implications of Unconventional Monetary Policies

• Macroeconomic and Fiscal Impacts of Quantitative Easing in New Zealand
  (presentation) 2.73MB
  Presenter: Karsten Chipeniuk, Reserve Bank of New Zealand
  Discussant: Pedro Gomis-Porqueras, Queensland University of Technology
  Download 2.58MB
• Normalizing the Central Bank’s Balance Sheet: Implications for Inflation and Debt Dynamics
  (presentation) 3.12MB
  Presenter: Begoña Domínguez, University of Queensland
  Discussant: Dmitry Titkov, Reserve Bank of Australia

Session Five: Monetary and Fiscal Policymaking in Practice

• Panel Discussion (summary to be published at a later date, along with final versions of papers and discussions)
  Moderator: Paul Conway, Reserve Bank of New Zealand
  Panellist: Michele Bullock, Reserve Bank of Australia
  Panellist: Joanne Hughes, New Zealand Treasury
  Panellist: Shane Johnson, Australian Treasury

Participants

• List of Participants
  Download 115KB