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RBA Glossary definition for inflation target

inflation target – A tool to guide monetary policy expressed as a preferred range or figure for the rate of increase in prices over a period. In Australia, the inflation target is between 2 and 3 per cent per annum on average over the course of the business cycle.

RBA Glossary definition for inflation

inflation – A measure of the change (increase) in the general level of prices.

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Appendix A: Derivation of the Mark-up Model of Inflation

31 Dec 2010 RDP 2010-03
David Norman and Anthony Richards
is the central bank's inflation target; α is a parameter that governs the degree to which prices are set with reference to an inflation target (α = 0) or to past ... inflation (α = 1); and ϕ 0 governs the magnitude of price-adjustment costs.
https://www.rba.gov.au/publications/rdp/2010/2010-03/appendix-a.html

Introduction

31 Dec 2010 RDP 2010-03
David Norman and Anthony Richards
Download the Paper 498. KB. Central banks in most advanced economies now operate with some form of either explicit or implicit inflation target, with the Reserve Bank of Australia (RBA) operating ... unlikely to perform well if inflation ever deviated
https://www.rba.gov.au/publications/rdp/2010/2010-03/introduction.html

Modelling Structure and Theory

31 Dec 2010 RDP 2010-03
David Norman and Anthony Richards
Our specification follows this latter approach by directly including (bond market) inflation expectations. ... Given no change in the inflation target, this results in the following specification for inflation:.
https://www.rba.gov.au/publications/rdp/2010/2010-03/modelling-structure-theory.html

References

31 Dec 2010 RDP 2010-03
David Norman and Anthony Richards
RDP 2010-03: Modelling Inflation in Australia References. David Norman and Anthony Richards. ... Ireland P (2007), ‘Changes in the Federal Reserve's Inflation Target: Causes and Consequences’, Journal of Money, Credit and Banking, 39(8), pp
https://www.rba.gov.au/publications/rdp/2010/2010-03/references.html

Results

31 Dec 2010 RDP 2010-03
David Norman and Anthony Richards
In particular, we compare these models to four alternatives: a constant annualised rate of 2 per cent (the mid-point of the inflation target); the previous quarter's year-ended underlying ... To conserve degrees of freedom, only one lag of each
https://www.rba.gov.au/publications/rdp/2010/2010-03/results.html

Investigating the Role of Other Variables or Restrictions

31 Dec 2010 RDP 2010-03
David Norman and Anthony Richards
inflation expectations is significantly different from 1 for samples beginning in or after 1987. ... or measures of shorter-term inflation expectations implied by financial markets (result not shown).
https://www.rba.gov.au/publications/rdp/2010/2010-03/investigating-role-other-variables.html