Search: inflation target

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1–8 of 8 collapsed search results for inflation target

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.

Search Results

Theory

31 Dec 1999 RDP 1999-08
Guy Debelle
where π is inflation, π. is the inflation target, y is output, y. ... Flexible inflation targeting refers to the case where λ>0. In practice, it appears that all the inflation-targeting central banks have adopted flexible inflation targets to varying
https://www.rba.gov.au/publications/rdp/1999/1999-08/theory.html

Practice

31 Dec 1999 RDP 1999-08
Guy Debelle
A narrower band may be regarded as a stronger commitment to the inflation target. ... The medium-term nature of Australia's inflation target has allowed for consideration to be given to output stabilisation.
https://www.rba.gov.au/publications/rdp/1999/1999-08/practice.html

Evidence

31 Dec 1999 RDP 1999-08
Guy Debelle
Consequently, the inflation process will have more inertia around the stable mean of the inflation target. ... In this respect, an inflation target has an advantage over a nominal income target.
https://www.rba.gov.au/publications/rdp/1999/1999-08/evidence.html

Conclusion

31 Dec 1999 RDP 1999-08
Guy Debelle
This paper has argued that such criticism is misplaced. From a theoretical perspective, even if a ‘strict’ inflation target is adopted, output considerations are still important because of the critical role ... The countries that have pursued
https://www.rba.gov.au/publications/rdp/1999/1999-08/conclusion.html

References

31 Dec 1999 RDP 1999-08
Guy Debelle
Haldane, A. and C. Salmon (1995), ‘Three Issues on Inflation Targets’, in Andrew Haldane (ed.), Targeting Inflation, Bank of England, pp. ... 81–100. Svensson, L. (1997a), ‘Inflation Forecast Targeting: Implementing and Monitoring Inflation
https://www.rba.gov.au/publications/rdp/1999/1999-08/references.html

Inflation and Output Variability

31 Dec 1999 RDP 1999-08
Guy Debelle
The loss of credibility may be reflected in a drift upwards in inflation expectations above the targeted rate, which in turn will increase the costs of bringing inflation back to target. ... A price-level target would decrease these costs even further
https://www.rba.gov.au/publications/rdp/1999/1999-08/inflation-and-output-variability.html

Introduction

31 Dec 1999 RDP 1999-08
Guy Debelle
in the long run is the maintenance of a low and stable inflation rate. ... An exclusive focus on returning inflation to the target rate as quickly as possible may come at the expense of creating excessive volatility in output.
https://www.rba.gov.au/publications/rdp/1999/1999-08/introduction.html

Three Episodes in Australia's Experience with Inflation Targeting

31 Dec 1999 RDP 1999-08
Guy Debelle
This can be illustrated by the conduct of monetary policy in three episodes since the introduction of the inflation target. ... The second episode also raises the issue of the symmetry of an inflation target.
https://www.rba.gov.au/publications/rdp/1999/1999-08/three-episodes-in-australias-experience-with-inflation-targeting.html