Monetary Policy: Theory vs Practice
Monetary Policy: Theory vs Practice
In theory, monetary policy is relatively straightforward. In practice, it is anything but. The gap between theory and practice was brought into sharp focus by the recent review of the RBA. Many observers had expected the review to focus on monetary policy objectives – a relatively theoretical aspect of monetary policy making. Instead, it surprised many by placing a major emphasis on very practical aspects such as institutional governance, culture and communications. This talk will discuss why these often overlooked practical aspects of monetary policy are, in fact, essential to good monetary policy making.
About the Speaker
Dr John Simon is currently an Adjunct Fellow in Economics at Macquarie University. Prior to this he had a long career in public policy working at the RBA and IMF, the last decade as Head of Research at the RBA. He has a PhD from MIT. His thesis, supervised by Olivier Blanchard and Daron Acemoglu, made a seminal contribution to the identification and understanding of the Great Moderation.
