Proceedings of a Conference
held at the H.C. Coombs Centre for Financial Studies, Kirribilli on 9–10 August 2004
THE FUTURE OF INFLATION TARGETING
Editors:
Christopher Kent Simon Guttmann
Economic Group Reserve Bank of Australia
The publication of these Conference papers is aimed at making the results of research undertaken in the Bank, and elsewhere, available to a wider audience. The views expressed are those of the authors, and not necessarily those of the Bank. References to the results and views presented should clearly attribute them to the authors, not to the Bank. The content of this publication shall not be reproduced, sold or distributed without the prior consent of the Reserve Bank of Australia.
Website: http://www.rba.gov.au
ISBN 0 9752213 0 2 (Print) Sydney, November 2004
Printed in Australia by J.S. McMillan Printing Group
Table of Contents
Introduction Christopher Kent and Simon Guttmann A Snapshot of Inflation Targeting in its Adolescence Kenneth N Kuttner Discussant: John C Williams 6 43 1
Can Central Bank Transparency Go Too Far? Frederic S Mishkin Discussant: Warwick J McKibbin 48 66
A Perspective on Monetary Policy Transparency and Communication Malcolm Edey and Andrew Stone Discussant: John Edwards 73 101
News and Interest Rate Expectations: A Study of Six Central Banks Ellis Connolly and Marion Kohler Discussant: Stefan Palmqvist 108 135
Inflation Measurement for Central Bankers Robert J Hill Discussant: Christopher Kent 140 161
Inflation in Australia: Measurement and Modelling Alexandra Heath, Ivan Roberts and Tim Bulman Discussant: Gordon de Brouwer 167 208
Inflation Targeting and Japan: Why has the Bank of Japan not Adopted Inflation Targeting? Takatoshi Ito Discussant: Robert N McCauley 220 268
Wrap-up Discussion Alan Bollard Claudio Borio Pierre Duguay Glenn Stevens Biographies of Contributors List of Conference Participants Other Volumes in this Series 274 277 284 289 294 301 303