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A Small Model of the Australian Macroeconomy

Beechey, Meredith; Bharucha, Nargis; Cagliarini, Adam; … - Reserve Bank of Australia - 2000

This paper presents a small model of the Australian macroeconomy. The model is empirically based, aggregate in nature and consists of five estimated equations – for non-farm output, the real exchange rate, import prices, unit labour costs and consumer prices. The stylised facts underlying each...

Persistent link: https://www.econbiz.de/10005125144

Asset-price Bubbles and Monetary Policy

Kent, Christopher; Lowe, Philip - Reserve Bank of Australia - 1997

In this paper we develop a theoretical framework that helps to analyse the role of monetary policy in responding to asset-price bubbles. A large and rapid fall in the nominal price of assets that form the basis of collateral for loans from financial intermediaries can have adverse effects on...

Persistent link: https://www.econbiz.de/10005423538

Component-smoothed Inflation: Estimating the Persistent Component of Inflation in Real Time

Gillitzer, Christian; Simon, John - Reserve Bank of Australia - 2006

This paper presents a new measure of underlying inflation: component-smoothed inflation. It approaches the problem of determining underlying inflation from a different direction than previous methods. Rather than excluding or trimming out volatile CPI items, it smoothes components of the CPI...

Persistent link: https://www.econbiz.de/10005423549

A Small Model of the Australian Macroeconomy: An Update

Stone, Andrew; Wheatley, Troy; Wilkinson, Louise - Reserve Bank of Australia - 2005

Almost a decade ago David Gruen and Geoff Shuetrim constructed a small macroeconomic model of the Australian economy. A comprehensive description of this model was subsequently provided by Beechey <em>et al</em> (2000). Since that time, however, the model has continued to evolve. This paper provides an...

Persistent link: https://www.econbiz.de/10005423570

Is the Phillips Curve a Curve? Some Evidence and Implications for Australia

Debelle, Guy; Vickery, James - Reserve Bank of Australia - 1997

The Phillips curve has generally been estimated in a linear framework. This paper investigates the possibility that the Phillips curve is indeed a curve, and shows that a convex short-run Phillips curve may be a more accurate representation of reality than the traditionally used linear...

Persistent link: https://www.econbiz.de/10005423618

Inflation Convergence Across Countries

Hyvonen, Markus - Reserve Bank of Australia - 2004

Ball and Sheridan (forthcoming) show that OECD countries with a history of high inflation before the 1990s have subsequently experienced a larger degree of disinflation than countries with a history of low inflation. They label this process ‘regression to the mean’, and argue that it...

Persistent link: https://www.econbiz.de/10005423647

The Performance of Trimmed Mean Measures of Underlying Inflation

Brischetto, Andrea; Richards, Anthony - Reserve Bank of Australia - 2006

This paper uses data for Australia, the United States, Japan and the euro area to examine the relative performance of the headline CPI, exclusion-based ‘cores’, and trimmed means as measures of underlying inflation. Overall, we find that trimmed means tend to outperform headline and...

Persistent link: https://www.econbiz.de/10005426687

The Phillips Curve in Australia

Gruen, David; Pagan, Adrian; Thompson, Christopher - Reserve Bank of Australia - 1999

In this paper we discuss the development of Phillips curves in Australia over the forty years since Phillips first estimated one using Australian data. We examine the central issues faced by researchers estimating Australian Phillips curves. These include the distinction between the short and...

Persistent link: https://www.econbiz.de/10005426716

The Butterfly Effect of Small Open Economies

Jääskelä, Jarkko; Kulish, Mariano - Reserve Bank of Australia - 2007

The rational expectations equilibrium of a small open economy can be subject to indeterminacy if foreign monetary … policy does not satisfy the Taylor principle. We study the implications of foreign-induced indeterminacy for the conduct of … monetary policy in a small open economy. In the canonical sticky-price small open economy model, we find that indeterminacy …

Persistent link: https://www.econbiz.de/10005232575

The Sticky Information Phillips Curve: Evidence for Australia

Gillitzer, Christian - Reserve Bank of Australia - 2015

The Sticky Information Phillips Curve (SIPC) provides a theoretically appealing alternative to the sticky-price New-Keynesian Phillips curve (NKPC). This paper assesses the empirical performance of the SIPC for Australia. There is only weak evidence in favour of the SIPC over the low-inflation...

Persistent link: https://www.econbiz.de/10011265303