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Evaluating monetary policy

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Abstract

It is important that central banks are accountable for their conduct of monetary policy. This article outlines a conceptual framework for evaluating monetary policy based on the principles of flexible inflation targeting. A central bank should make full use of all relevant information, and learn from new information and forecast errors as these come to light.

Suggested Citation

  • Dean Ford & Elizabeth Kendall & Adam Richardson, 2015. "Evaluating monetary policy," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 78, pages 3-21, November.
    • Handle: RePEc:nzb:nzbbul:nov2015:07
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    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/2015/2015nov78-7.pdf
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    References listed on IDEAS

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    1. Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008. "Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 46(4), pages 910-945, December.
    2. Chris Hunt, 2004. "Interpreting clause 4(b) of the Policy Targets Agreement: avoiding unnecessary instability in output, interest rates and the exchange rate," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 67, june.
    3. Nikki Kergozou & Satish Ranchhod, 2013. "Why has inflation in New Zealand been low?," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 76, pages 3-11, September.
    4. Felipe Labbe & Hamish Pepper, 2009. "Assessing recent external forecasts," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 72, pages 19-25, December.
    5. repec:pri:cepsud:161blinder is not listed on IDEAS
    6. Levin, Andrew & Gürkaynak, Refet & Swanson, Eric T., 2006. "Does Inflation Targeting Anchor Long-Run Inflation Expectations? Evidence from Long-Term Bond Yields in the US, UK and Sweden," CEPR Discussion Papers 5808, C.E.P.R. Discussion Papers.
    7. Dr Alan Bollard, 2002. "The evolution of monetary policy in New Zealand: a speech to the Rotary Club of Wellington," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 65, December.
    8. Ross Kendall & Tim Ng, 2013. "The 2012 Policy Targets Agreement: an evolution in flexible inflation targeting in New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 76, pages 3-12, December.
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    Cited by:

    1. Amber Wadsworth, 2017. "An international comparison of inflation-targeting frameworks," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80, pages 1-34, August.
    2. Adam Richardson, 2016. "Behind the scenes of an OCR decision in New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 79, pages 1-15, July.
    3. Michelle Lewis & Dr John McDermott & Adam Richardson, 2016. "Inflation expectations and the conduct of monetary policy in New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 79, pages 1-12, March.
    4. Michelle Lewis, 2016. "Inflation expectations curve: a tool for monitoring inflation expectations," Reserve Bank of New Zealand Analytical Notes series AN2016/01, Reserve Bank of New Zealand.
    5. John McDermott & Rebecca Williams, 2018. "Inflation Targeting in New Zealand: An Experience in Evolution," RBA Annual Conference Volume (Discontinued), in: John Simon & Maxwell Sutton (ed.),Central Bank Frameworks: Evolution or Revolution?, Reserve Bank of Australia.
    6. Julia Ratcliffe & Ross Kendall, 2019. "Monetary policy strategy in New Zealand," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 82, pages 1-25, April.
    7. Amber Wadsworth, 0. "An international comparison of inflation-targeting frameworks," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80.
    8. repec:nzb:nzbbul:jul2016:07 is not listed on IDEAS
    9. Chris Hunt, 2017. "Independence with accountability: financial system regulation and the Reserve Bank," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80, December.

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