Inflation expectations and the conduct of monetary policy in New Zealand
Michelle Lewis (),
Christopher McDermott () and
Reserve Bank of New Zealand Bulletin, 2016, vol. 79, No 4, 12 pages
Inflation expectations are a key component to consider for any inflation-targeting central bank. This article outlines the importance of inflation expectations in the conduct of monetary policy, discusses some useful tools the Bank has developed to assess the policy implications of inflation expectations, highlights recent trends in inflation expectations, and draws out the implications for current monetary policy settings in New Zealand.
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