Introduction to the Policy Forum on the Inflation Target

Introduction to the Policy Forum on the Inflation Target -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The Australian Economic Review, vol. 32, no. 1, pp. 62–3 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research 1999 Published by Blackwell Publishers Ltd, 108 Cowley Road, Oxford OX4 1JF, UK and 350 Main Street, Malden, MA 02148, USA In Australia the central bank, the Reserve Bank of Australia (RBA), has notional dual targets of minimising inflation and maximising employ- ment while other central banks, such as the central bank of New Zealand, have achieving low inflation as the sole target. In recent years a contentious issue has been the extent to which the RBA targets the minimisation of inflation possibly at the expense of alternative targets such as the reduction of unemployment. While monetary economists have generally, but not universally, held the view that it is appropriate for the RBA to concentrate on the inflation target there has been criticism from non- economists concerning the goals and efficacy of the inflation target and from some econo- mists in regard to the way in which the inflation target is set. The Policy Forum aims to canvass all of these issues and others thought appropri- ate by the contributors. The Policy Forum commences with a survey of the role and objectives of central banks in the United Kingdom, New Zealand and Australia by Charles Bean. He notes that of these three, New Zealand and the United Kingdom have in- dependent central banks pursuing mandated targets. Whereas the supporting legislation for the Bank of England mentions price stability and, subject to that, objectives for growth and employment, that for the RBA requires it to be concerned about the stability of the currency, the maintenance of full employment and the economic prosperity and welfare of the people. By contrast the NZ Reserve Bank is empow- ered to be concerned primarily with maintain- ing stability in the general level of price. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/28/2010 for the course ECON ECON2001 taught by Professor Tonyblake during the Spring '10 term at University of St Andrews.

Page1 / 2

Introduction to the Policy Forum on the Inflation Target -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online