Does monetary policy respond to uncertainty? Evidence from Australia

Natalia Ponomareva; Jeffrey Sheen; Ben Zhe Wang

doi:10.1111/1467-8462.12338

Does monetary policy respond to uncertainty? Evidence from Australia

Natalia Ponomareva, Jeffrey Sheen, Ben Zhe Wang^*

^*Corresponding author for this work

Department of Economics

Research output: Contribution to journal › Article › peer-review

4 Citations (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 language	English
Pages (from-to)	336-343
Number of pages	8
Journal	Australian Economic Review
Volume	52
Issue number	3
DOIs	https://doi.org/10.1111/1467-8462.12338
Publication status	Published - 1 Sept 2019

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Does monetary policy respond to uncertainty? Evidence from Australia

Abstract

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