Search: 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.
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MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
1 Aug 2019
RDP
2019-07
The central bank sets the cash rate according to a monetary policy reaction function that responds to deviations of trimmed mean inflation from the inflation target, the unemployment gap and the ... The central bank adjusts interest rates to ensure that
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
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The Consequences of Low Interest Rates for the Australian Banking Sector
21 Dec 2022
RDP
2022-08
business cycle) shocks have worked their way through the economy. With a constant inflation target, if the neutral rate is low by historical standards, the nominal policy rate will also tend ... Central bank deposits in Australia are remunerated at a
https://www.rba.gov.au/publications/rdp/2022/2022-08/full.html
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Inflation Targeting and Output Stabilisation
1 Dec 2009
RDP
PDF
134KB
In particular, the inflation target can serve an important roleas an anchor for price and wage setters. ... The medium-term nature of Australia’s inflation target has allowed forconsideration to be given to output stabilisation.
https://www.rba.gov.au/publications/rdp/1999/pdf/rdp1999-08.pdf
Inflation Convergence
31 Dec 2004
RDP
2004-04
They initially produce results suggesting benefits from inflation targeting, namely that the seven OECD countries that adopted inflation targets experienced larger falls in inflation than the thirteen OECD countries that did ... Countries that did not
https://www.rba.gov.au/publications/rdp/2004/2004-04/inflation-convergence.html
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Disagreement about Inflation Expectations
1 Apr 2016
RDP
2016-02
As discussed in the introduction, one justification for relatively low inflation targets is that low levels of inflation are likely to be associated with low levels of uncertainty about inflation. ... In addition, inattentiveness might actually suggest a
https://www.rba.gov.au/publications/rdp/2016/2016-02/full.html
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Price Targets or Nominal Income Targets?
1 Jul 1989
RDP
8905
https://www.rba.gov.au/publications/rdp/1989/8905/price-targets-or-nominal-income-targets.html
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Credit Spreads, Monetary Policy and the Price Puzzle
1 Jan 2020
RDP
2020-01
If the Board changes the cash rate for reasons other than achieving its inflation target, these changes can be used as instruments for policy shocks with regard to inflation. ... Since money and credit market conditions provide additional information
https://www.rba.gov.au/publications/rdp/2020/2020-01/full.html
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The Model
1 Sep 2000
RDP
2000-06
The inflation target embedded in the monetary-policy rule acts as the nominal anchor and brings about nominal equilibrium in the model. ... Repeating this experiment with a monetary-policy rule that responds to the deviation of non-tradeable (rather than
https://www.rba.gov.au/publications/rdp/2000/2000-06/model.html
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MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
20 Aug 2019
RDP
PDF
1571KB
to deviations of trimmed mean inflation from the inflation target, the unemployment gap and the. ... interest rates to meet its inflation target) others (such as the assumption that long-run expenditure.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-07.pdf
Inflation Performance
31 Dec 2001
RDP
2001-02
Furthermore, in the period since the adoption of the inflation target, it is clear that inflation has been below 2 per cent for longer than it has been above 3 per ... of having an inflation target; in fact, I cannot recall anyone even contemplating it
https://www.rba.gov.au/publications/rdp/2001/2001-02/inflation-performance.html
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