Does monetary policy respond to uncertainty? Evidence from Australia

Natalia Ponomareva, Jeffrey Sheen, Ben Zhe Wang*

*Corresponding author for this work

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

We construct a novel measure of uncertainty using expert monetary policy recommendation data for Australia. Our results suggest that the Reserve Bank of Australia (RBA) tends to lower the cash rate when expert uncertainty is high. This result is robust to using other uncertainty measures.

Original languageEnglish
Pages (from-to)336-343
Number of pages8
JournalAustralian Economic Review
Volume52
Issue number3
DOIs
Publication statusPublished - 1 Sep 2019

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