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vanguard of the inflation targeting policy strategy, namely Australia, Canada, and New Zealand, and use the resulting estimates …
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Under a flexible inflation targeting regime, should policymakers avoid any reaction to movements in the foreign exchange market? Using data for six advanced open economies explicitly targeting inflation, the paper examines empirically whether real exchange rate disequilibria systematically...
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activity for New Zealand. To provide a basis for comparison, data from Australia and the US are also considered. Many studies …, especially of the inflation targeting variety. Both Australia and New Zealand have been targeting inflation for a number of years …-term interest rates well in either Australia or US data. However, when there are large policy "shocks" from abroad, such as the US …
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