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