Research Discussion Paper – RDP 9703 The Implementation of Monetary Policy in Australia

Contents

• Introduction
• The Australian Framework for Implementing Monetary Policy
• The Thinking Underlying Current Arrangements
• The Impact on Financial Markets
• Concluding Remarks
• Appendix A: Adjustment of Actual Cash Rate to Target Rate
• Appendix B: A Model of Interest-rate Adjustment
• References

This paper was prepared for the Autumn Meeting of Central Bank Economists at the Bank for International Settlements, Basle, in October 1996. We are grateful to Eleanor Lewis and Tim Rocks for invaluable research assistance. The opinions expressed are those of the authors and should not be attributed to the Reserve Bank of Australia.