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

Papers

Links to papers will be provided as soon as they are available.

These papers are available for downloading in Adobe Acrobat format only.0092493_files/web-page-for-monetary-policy-workshop-8-june-200000.jpg

You may need to go to the Adobe website at http://www.adobe.com if you do not already have the reader installed.

  • Prof. Michael Woodford, remarks based on:

"Commentary: How should monetary policy be implemented in an era of price stability?" (PDF 201KB)

  • Dr Athanasios Orphanides, remarks based on:

"Activist stabilization policy and inflation : the Taylor rule in the 1970s" (PDF 166 KB) and "The quest for prosperity without inflation" (PDF 604KB)

  • Mr Yuong Ha, remarks based on:

"Uncertainty about the length of the monetary policy transmission lag: implications for monetary policy" (PDF 176KB)

  • Dr Alex Heath, remarks based on:

"Monetary policy decision making in the presence of Knightian uncertainty" (PDF 204KB)

  • Dr Graeme Guthrie, remarks based on:

"The optimal design of interest rate target changes" (PDF 281KB)

Workshop Participants

Speakers

  • Prof. Michael Woodford, Princeton University

  • Dr Athanasios Orphanides, Federal Reserve Board of Governors

  • Dr Alex Heath, Reserve Bank of Australia

  • Mr Yuong Ha, Reserve Bank of New Zealand

  • Dr Graeme Guthrie, Victoria University of Wellington

Contact details

Christopher Smith (Christie Smith)

Reserve Bank of New Zealand

2 The Terrace

PO Box 2094

Wellington, New Zealand

Email:smithc@rbnz.govt.nz

Telephone: 64 4-471-3657

Fax: 64 4-473-1209