Changes in supply and demand can change the price of a good or service. Typically, an increase in supply causes the price to fall, whereas an increase in demand causes the price to rise. Economists are often interested in estimating how much price changes are driven by supply or demand ‘shocks’. This was a particularly important question following the COVID-19 pandemic and the rise in inflation in many advanced economies – was this due to supply or demand factors? And depending on the answer, how should monetary policy respond? The contributions of supply and demand shocks can be estimated using econometric models. One popular approach requires making assumptions about how the economy works and one of these assumptions is that supply curves are upward sloping and demand curves are downward sloping (‘sign restrictions’). There is general agreement that this assumption is correct, but it does not allow us to exactly estimate the contributions of shocks. Instead, it only allows us to say that the contributions lie within a range. Our researcher aimed to clarify what we can learn about the contributions of shocks to price changes when making assumptions about the slopes of supply and demand curves. Read the paper to learn more: https://bit.ly/3Mdkv9S Want to get to know our researchers? Check out our Researcher Profiles: https://bit.ly/3yK2IEb
Reserve Bank of Australia
Banking
Sydney, NSW 151,459 followers
We conduct monetary policy, work to maintain a strong financial system and issue the nation’s banknotes.
About us
The Reserve Bank of Australia is Australia's central bank. Its duty is to contribute to the maintenance of price stability, full employment, and the economic prosperity and welfare of the Australian people. It does this by setting the cash rate to meet a medium-term inflation target, working to maintain a strong financial system and efficient payments system, and issuing the nation's banknotes. The Bank provides selected banking services to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia's gold and foreign exchange reserves.
- Website
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https://www.rba.gov.au/careers/
External link for Reserve Bank of Australia
- Industry
- Banking
- Company size
- 1,001-5,000 employees
- Headquarters
- Sydney, NSW
- Type
- Government Agency
- Specialties
- Monetary Policy, Market Operations, Financial Stability, Payments System, Financial Services, and Banknotes
Locations
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Primary
65 Martin Pl
Sydney, NSW 2000, AU
Employees at Reserve Bank of Australia
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Joanne Kendrick
Based in Sydney. Program Management | Business Transformation | Operational Risk | Governance | Business Resilience
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Alastair Bor
Deputy Head at Reserve Bank of Australia
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Andrew Reeve
Head of Change
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Stephen Smith
Chief Information Officer at Reserve Bank of Australia
Updates
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Governor Michele Bullock and other senior staff are appearing today before the House of Representatives Standing Committee on Economics. The hearing began with the Governor delivering an opening statement, followed by each Committee member asking a series of questions about the Bank's work and the economy. Read the opening statement: https://bit.ly/4fK9f2p
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We're recruiting graduates for our 2025 Graduate Program who are keen to learn a different side of central banking supporting public policy though the critical payments infrastructure we operate. Join our team and you'll be set up for success with all the support and development you need on your graduate journey. Apply now: https://bit.ly/3M875vQ
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Our Payments System Board held its quarterly meeting today. Members discussed a range of issues including the annual Assessment of the ASX clearing and settlement facilities against the Financial Stability Standards, oversight of international financial market, Competition in the debit card market and more. Read the media release: https://bit.ly/4fGxC0Z #RBA #Payments #PaymentsSystemBoard
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Deputy Governor Andrew Hauser spoke at the ESA Business Lunch in Brisbane yesterday about the risks of overconfidence in economic commentary and ways in which central banks can avoid falling prey to it in our own deliberations Read, watch or listen to his speech online: https://lnkd.in/gva_d_2K
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Governor Michele Bullock spoke at the Rotary Club of Armidale yesterday about the context for this week's Board decision as well as economic conditions, challenges and opportunities in regional Australia. Read, watch or listen to her speech online: https://bit.ly/4dhgw87
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Congratulations to Sharon Draper, who has been awarded this year's Premier's RBA Economics Scholarship. Sharon, who is a head teacher at Calrossy Anglican School in Tamworth, will use the scholarship to examine the conditions necessary to draw more students to study economics in rural and regional schools. Learn more about the scholarship here: https://bit.ly/3WCYCFN #PremiersTeacherScholarships #RBA #RBAEducationProgram #Economics
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Our Statement on Monetary Policy sets out our assessment of current economic and financial conditions as well as the outlook that the Reserve Bank Board considered in making its interest rate decision. Read the August SMP – https://bit.ly/4cmufJA
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ICYMI - Governor Michele Bullock explained the Reserve Bank Board's monetary policy decision and answered questions from media yesterday afternoon. Watch it here: https://bit.ly/3LUiFdV
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At its meeting today, the Board decided to leave the cash rate target unchanged at 4.35 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.25 per cent – https://bit.ly/4cdIfWe