Browsing by Author "Karunaratne, Neil Dias"

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    Inflation targeting macroeconomic distortions and the: policy reaction function
    (2000-01) Karunaratne, Neil Dias
    The paper examines the evolution of monetary policy design in Australia over the past quarter of a century culminating recently in the adoption of an inflation targeting approach through the institutional mechanism of CBI (Central Bank Independence). Cross-country empires have repeatedly confirmed the stylized fact that high CBI develivers low inflation. This study covers new ground by using time-series techniques to test the nexus between CBI and inflation using Australian quarterly time-series data for sample period 1973Q3-1998Q4.