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Designing monetary policy committees

18/04/2018

For a government trumpeting openness and transparency, this seems a strange way to proceed.

croaking cassandra

Last week the Reserve Bank of Australia hosted a conference on Central Bank Frameworks: Evolution or Revolution.  I wrote last week about the paper by Reserve Bank Assistant Governor John McDermott, which was given at the conference.

But when the RBA yesterday released most of the rest of the conference papers, I noticed one that really should be relevant to the current New Zealand work underway reviewing and revising the Reserve Bank Act.  Unfortunately, it isn’t a fully worked-up paper, but the slides on “Robust Design Principles for Monetary Policy Committees” have plenty of content (and no equations, for those wary of what they might offer in such contexts), and should offer food for thought for the Minister of Finance and his Treasury officials as they pull together the new legislation.  Unfortunately, as far as I can see, the proposed New Zealand model is mostly quite inconsistent with…

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