Reserve Bank and the Minister of Finance, we identify policy-makers’ willingness to trade off inflation outcomes for …

This paper uses wavelets to develop a core inflation measure for inflation targeting central banks. The analysis is … applied to the case of New Zealand – the country with the longest history of explicit inflation targeting. We compare the …-term trend in inflation. It also has comparable forecasting performance to standard benchmarks. …

representing society's preferences between inflation, output and other dimensions of macroeconomic stability. Within the context of …

Many critics of the Taylor rule claim that it is inferior to inflation forecast based (IFB) rules because it is not …

significantly increases the volatility of inflation, output and interest rates, and that the benefits of exchange rate stabilisation … benefits. Indeed, a major cost of including the exchange rate within the goals of monetary policy is that inflation … expectations become less anchored to the inflation target, meaning that larger movements in nominal interest rates are required to …

inflationary pressure, as measured by future non- tradables inflation, has been reasonably good, both in real time and ex post …

I investigate New Zealand's rate of inflation and its deviations from target using two new methods: 1) Rowe's (2002 …) new way of examining the correlations between inflation deviations from target and indicators. Any significant …) Cukierman and Gerlach (2003) and Ruge-Murcia's (2001) new inflation bias hypothesis. As a counterpoint to Kydland and Prescott …

to reduce variability in output, the exchange rate and interest rates while maintaining an inflation target. Our … experiment suggests that policy could be altered to increase the stability of interest rates, the exchange rate, inflation, or … inertial inflation expectation process in FPS. …

growth, CPI inflation, non-tradable CPI inflation, and tradable CPI inflation with real-time forecasts made by the Reserve …