The information content of the Reserve Bank of Australia's inflation forecasts |
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Authors: | George B Tawadros |
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Institution: | 1. School of Economics, Finance and Marketing, RMIT University , Building 108, Level 12, 239 Bourke St, Melbourne 3001, Australia George.Tawadros@rmit.edu.au |
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Abstract: | In this article, the inflation forecasts produced by the Reserve Bank of Australia (RBA) and that generated by private forecasters, are used to assess whether the Reserve Bank possesses information about inflation that the private sector does not have. The results show that the Reserve Bank inflation forecasts embody useful predictive information about inflation, beyond that contained in private forecasts, over the recent inflation targeting period. |
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Keywords: | inflation asymmetric information hypothesis encompassing tests forecasting |
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