Research Discussion Paper – RDP 9105 Inflation in Australia: Causes, Inertia and Policy

Contents

• Introduction
• The Structural Model: Specification
• Testing the Exogeneity of Nominal Wage Growth
• Short-Run Determinants of Inflation
• The Structural Model: Estimation
• Policy Implications
• References
• Appendix 1: Granger Causality and Exogeneity
• Appendix 2: Data Methods and Sources
• Appendix 3: Tests for Serial Correlation and Heteroskedasticity
• Appendix 4: Data

We are grateful to colleagues at the RBA for helpful comments, especially Malcolm Edey. Any errors are ours alone. The views expressed herein are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.