publication . Preprint . Article . 2011

PROBABILISTIC INTEREST RATE SETTING WITH A SHADOW BOARD: A DESCRIPTION OF THE PILOT PROJECT

Timo Henckel; Shaun P. Vahey; Liz Wakerly;
Open Access
  • Published: 01 Aug 2011
Abstract
This study aims to assess the scope for monetary policymakers to aggregate probabilistic interest rate advice. The members of a Shadow Board give probabilistic assessments of the appropriate (target) interest rate for Australia in real time. The pilot project will be running each month from August to December (inclusive) 2011, with the Shadow Board giving advice shortly before each decision by the Reserve Bank of Australia (RBA) Board.
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Subjects
free text keywords: Interest rate, media_common.quotation_subject, media_common, Engineering, business.industry, business, Operations research, Shadow, Probabilistic logic
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