25 years of inflation targeting in Australia: Are there better alternatives for the next 25 years?

Vol: 
19/2018
Author name: 
McKibbin W
Panton A
Year: 
2018
Month: 
May
Abstract: 

This papers surveys alternative monetary frameworks and evaluates whether the current inflation targeting framework followed by the RBA for the past 25 years is likely to be the most appropriate framework for the next 25 years. While flexible inflation targeting has appeared to work well in Australia in the past decades, the nature of future shocks suggests that some form of nominal income targeting is worth considering as an evolutionary change in Australia’s framework for monetary policy.

Publication file: 

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