The lack of developed financial markets and well-functioning transmission channels assigns monetary aggregates in emerging economies the potential role of nominal anchor, intermediate target, or informational variable for monetary policy. The effectiveness of this approach relies crucially on...

For the first time in the literature, this paper uses survey-based measures of inflation expectations to examine the relationship between inflation and relative price variability (RPV). Using quarterly consumer price index data for 74 consumption categories in Australia from 1989 to 2014, we...