Monetary policy decision making: proactive or reactive workshop held at RBNZ

Reserve Bank of New Zealand Workshop held on 8 June 2000

The papers in this workshop consider how forward-looking monetary policy should be, and how monetary policy should proceed in the face of uncertainties about the structure of the economy.

Given the manifest uncertainties that affect macroeconomic models, should a central bank wait until tangible inflation pressures are evident? Or should a central bank respond promptly to the inflation pressures that are projected to arise in future? And what are the consequences of making mistakes in modelling the structure of the economy? Are some types of mistakes preferable, in the sense that they have a less negative effect vis-a-vis other mistakes?

Programme Schedule for Monetary Policy Decision Making: Proactive or Reactive?

Speakers have been invited to talk for forty-five minutes. Each paper will then be discussed by a discussant for ten minutes, following which there will be five minutes to address questions from the other participants.

Workshop will be held on the 2nd floor of the Reserve Bank of New Zealand.

Thursday 8 June 2000
9.20am	Introductory remarks of welcome from the Reserve Bank of New Zealand
9.30am	Prof. Michael Woodford "How forward-looking should monetary policy be?"
10.15am	Discussant - Dr Guy Debelle
10.25am	Questions from the floor
10.35-10.50am	Morning tea
10.55am	Dr Athanasios Orphanides "Activist stabilization policy and inflation"
11.40am	Discussant - Mr L Christopher Plantier
11.50am	Questions from the floor
12.00-1.00pm	Lunch
1.00pm	Mr Yuong Ha "Uncertainty about the length of the monetary policy transmission lag: implications for monetary policy "
1.45pm	Discussant - Prof. Argia Sbordone
1.55pm	Questions from the floor
2.10pm	Dr Alex Heath "Monetary policy decision making in the presence of Knightian uncertainty"
2.55pm	Discussant - Dr John McDermott
3.05pm	Questions from the floor
3.15-3.30pm	Afternoon tea
3.35pm	Dr Graeme Guthrie "The optimal design of interest rate target changes"
4.20pm	Discussant - Prof. Adrian Pagan
4.30pm	Questions from the floor
4.40pm	Reserve Bank offers thanks