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In an open economy inflation-targeting framework, whether policy-makers should target aggregate or non-traded inflation depends on the structural relationships in the economy. This paper shows that in a small empirical model of the Australian economy, it makes little difference which measure is...
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Historical experience shows that disruptions in credit markets can have a material impact on activity and inflation …. However, it is hard to measure such effects owing to the difficulty in isolating credit supply shocks. This paper employs … survey data to identify the impact of credit supply shocks in Australia over the past three decades, using a structural …
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