In the past decade, inflation in Australia and most other industrialised countries has been extremely well behaved. An important question is whether this reflects a series of favourable shocks to prices or a more fundamental change in the inflation process. In this paper, we explore developments...

This paper examines exchange rate pass-through for the prices of imports and manufactured exports. It is found that, in the long run, exchange rate pass-through over the docks is complete for both classes of good. However, pass-through to import prices is more rapid than that to manufactured...