The paper analyses the evolution of monetary policy design in Australia over the period 1973Q3-1998Q3, highlighting the influence of macroeconomic paradigms on monetary policy design. The conventional wisdom models inflation targeting by minimizing a quadratic loss function subject to the Lucas...

This paper examines empirically the validity of the New Classical policy neutrality or the Macro Rational Expectations Hypothesis in the Australian context in the period 1977Q1-1987Q2, when policymakers pursued activist policies. The empirical evidence from this study although somewhat mixed...

The Nobel Laureate Milton Friedman has been acknowledged as the father of Monetarism and the champion of free market capitalism. Even his critics salute him as a "giant" and "one of the most brilliant economists of all time". Friedman based Monetaritst theories on the classical tradition. He...

The growing consensus that the design of scientific monetary policy requires targets or rules rather than discretion is explained in the paper, using a macro-theoretic framework. A quadratic loss function constrained by a an expectations augmented Phillips curve has been used to demonstrate that...

This paper examines whether Sri Lanka's monetary policy should be redesigned to cope with the challenges of the forces of globalization. The new insights from scientific monetary policy design contend that implementing the institutional framework of Inflation Targeting and Central Bank...

This paper analyzes the performance of the Hard Currency Strategy (HCS) which was the centerpiece of Papua New Guinea's (PNG's) post-independence macroeconomic stabilization policies. The main aims of the HCS were the maintenance of the convertibility and the purchasing power of the domestic...