Lifting the cloud of confusion over monetary policy

Download

Full text for this resource is not available from the Research Repository.

Export

Coombes, Trevor and Reimers, David (2009) Lifting the cloud of confusion over monetary policy. Economic Papers, 28 (2). pp. 130-138. ISSN 0812-0439

Abstract

There is no doubt that the Reserve Bank of Australia (RBA) controls base money, but this paper shows that the RBA does not, and has no need to, target base money in order to re-set the cash rate. The money supply in Australia, including base money, is endogenous. Conceiving base money as an instrument of policy confuses normal smoothing operations with a change in stance.

Dimensions Badge

Altmetric Badge

Item type	Article
URI	https://vuir.vu.edu.au/id/eprint/4229
DOI	10.1111/j.1759-3441.2009.00016.x
Official URL	http://onlinelibrary.wiley.com/doi/10.1111/j.1759-...
Subjects	Historical > Faculty/School/Research Centre/Department > School of Economics and Finance Historical > FOR Classification > 1402 Applied Economics Historical > SEO Classification > 9101 Macroeconomics
Keywords	ResPubID17365. endogenous base money, cash rate determination, smoothing, monetary policy, economic trends, economic forecasting, Reserve Bank, RBA, Australia, Australian
Citations in Scopus	0 - View on Scopus
Download/View statistics	View download statistics for this item