Plenary Session Three
The New Financial Landscape - What should be the target of central banks in a disrupted world?
Inflation targeting by central banks is seen by many as the best possible monetary framework that has worked well for 25 years. However both theory and recent experience have demonstrated that while this approach can stabilize an economy faced with fluctuations in demand, it is a poor framework to deal with other types of shocks such as changes in productivity, climate volatility, excessive debt, and shifts in risk.
In this session, industry experts from the US and Australia will discuss whether there is a better framework for monetary policy and should Australia again lead the world in moving towards this before an inevitable crisis of confidence in the current monetary framework forces change? How can central banks keep pace with the rapid transformation in societies, economies, communications and the systemic risks this generates?
Professor John B Taylor
Professor of Economics at Stanford University; Senior Fellow in Economics at the Hoover Institution and Chair of the Working Group on Economic Policy, (US)
Dr John Simon
Head of Economic Research, Reserve Bank of Australia
Professor Warwick McKibbin AO
Professor of Public Policy and Director, Centre for Applied Macroeconomic Analysis in the Crawford School of Public Policy at the Australian National University
Professor Bruce Preston
Professor of Economics, University of Melbourne