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Price-level targeting: how inflation-focused central banks can squeeze more from interest rates

  • Written by Mariano Kulish, Professor of Macroeconomics, University of Sydney
Price-level targeting: how inflation-focused central banks can squeeze more from interest ratesShutterstock

The Reserve Bank of Australia has cut its official interest rate to 0.25%. The bank’s governor, Philip Lowe, reckons this is as low as the bank can go.

The cut – the first this century to have been decided outside the normal monthly meeting of the bank’s board – underlines the economic threat posed by the...

Read more: Price-level targeting: how inflation-focused central banks can squeeze more from interest rates

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