The Reserve Bank's operational independence, once revolutionary, is shown to now be widely accepted internationally in the fascinating story of how this small central bank took the opportunities created by the political changes of the 1980s to design a unique institutional policy framework,...

We explore the effects of forward guidance at the zero lower bound when there is uncertainty over the lift-off date arising from: (i) the imperfect credibility of time-inconsistent forward-guidance promises; (ii) incomplete communication. We use a simple New Keynesian model to demonstrate that a...

Forward guidance about future policy settings, in the form of a published policy-rate path, has for many years been a natural part of normal monetary policy for several central banks, including the Reserve Bank of New Zealand and the Swedish Riksbank. More recently, the Federal Reserve has...

We study zero interest-rate policy in response to a large negative demand shock when long-run expectations can fall over time. Because falling expectations make monetary policy less effective by raising real interest rates, the optimal forward guidance policy makes large front-loaded promises to...

This research looks into the functioning of the Reserve Bank of India and how the economics of the country is geared together with the reserve bank. This research focuses on the gold reserve of the Reserve Bank of India and its mechanisms as a tool of controlling and operating the economy of the...

The Reserve Bank of New Zealand (RBNZ) has been the first central bank that began to publish interest rate projections in order to improve its guidance of monetary policy. This paper provides new evidence on the role of interest rate projections for market expectations about future short-term...