Security in Retirement: Forecasting and Managing Macro Investment Risks. In his Boyer Lectures Ian Macfarlane, former RBA governor, observed that risks once borne by employers or governments are in the process of being transferred to households. Retirement incomes are a case in point. Not only do most households belong to accumulation funds which shift investment risks to members, but exposure to growth assets (equities and property) in the typical account is in the 60% - 70% range, even in the ....Security in Retirement: Forecasting and Managing Macro Investment Risks. In his Boyer Lectures Ian Macfarlane, former RBA governor, observed that risks once borne by employers or governments are in the process of being transferred to households. Retirement incomes are a case in point. Not only do most households belong to accumulation funds which shift investment risks to members, but exposure to growth assets (equities and property) in the typical account is in the 60% - 70% range, even in the case of retirees. Our project will focus on the forecasting and management of economy-wide risks, as distinct from the equity risks or credit risks attached to investments in particular companies.Read moreRead less
Evaluation of targeting rules for implementing monetary policy. Monetary policy plays a primary role in stabilising business cycle fluctuations and in mitigating the effects of large economic shocks. This research deals with key issues in the operation of monetary policy. Our econometric analysis will provide new evidence on the short term goals pursed by central banks and improve our understanding their trade-offs. One application of our results will be an improvement in the ability to measure ....Evaluation of targeting rules for implementing monetary policy. Monetary policy plays a primary role in stabilising business cycle fluctuations and in mitigating the effects of large economic shocks. This research deals with key issues in the operation of monetary policy. Our econometric analysis will provide new evidence on the short term goals pursed by central banks and improve our understanding their trade-offs. One application of our results will be an improvement in the ability to measure and evaluate the performance of central banks. Greater evidence on the objectives and constraints of central banks will increase public knowledge and understanding of monetary policy, leading to more effective policy. Read moreRead less
The Theory and Measurement of Stock-Market Indices. This project should promote an innovation culture in Australia by
designing new benchmark indices for evaluating the performance of
fund managers (and other uses), thus encouraging the allocation of
funds to their most productive uses. It will produce a better
measure of asset price inflation than any currently in existence
which will be of use to the Reserve Bank in the setting of
monetary policy. This project will also enhance the reput ....The Theory and Measurement of Stock-Market Indices. This project should promote an innovation culture in Australia by
designing new benchmark indices for evaluating the performance of
fund managers (and other uses), thus encouraging the allocation of
funds to their most productive uses. It will produce a better
measure of asset price inflation than any currently in existence
which will be of use to the Reserve Bank in the setting of
monetary policy. This project will also enhance the reputation of
Australian universities as centres of cutting-edge academic
research, provide a thesis topic for a PhD student, and help build
links between the academic and private sectors.Read moreRead less
House Prices in Australia: A Hedonic Analysis. House prices are an important input to monetary policy since they impact directly on inflation and may be a source of speculative bubbles. The Governor of the Reserve Bank, however, recently described housing as the ``weakest link in all the price data.'' This project will attempt to resolve this problem. The resulting indexes should be of considerable interest to the Reserve Bank, the media, home owners, the real estate industry, and enhance the re ....House Prices in Australia: A Hedonic Analysis. House prices are an important input to monetary policy since they impact directly on inflation and may be a source of speculative bubbles. The Governor of the Reserve Bank, however, recently described housing as the ``weakest link in all the price data.'' This project will attempt to resolve this problem. The resulting indexes should be of considerable interest to the Reserve Bank, the media, home owners, the real estate industry, and enhance the reputation of Australian universities. They will also quantify the extent of the burden imposed on young people by rising house prices, and its consequent strain on society.Read moreRead less