The RBA has a new brain. It has thoughts on what'll happen after interest rates hit zero
- Written by Isaac Gross, Lecturer, Monash University
MARTIN stands for “Macroeconomic Relationships for Targeting Inflation”, or perhaps merely for “Martin Place” which is the location of the Reserve Bank’s headquarters in Sydney.
It’s the bank’s new computer model of the Australian economy, made up of 147 equations working in concert. Some are quite simple, such as how global oil prices affect domestic petrol prices, whereas others are more complex, such as how a rise in the unemployment rate affects household spending.
- ^ Macroeconomic Relationships for Targeting Inflation (www.rba.gov.au)
- ^ Reserve Bank of Australia (www.rba.gov.au)
- ^ MARTIN has its place (www.rba.gov.au)
- ^ business economists in Sydney (webcasting.boardroom.media)
- ^ Below zero is ‘reverse’. How the Reserve Bank would make quantitative easing work (theconversation.com)
- ^ We asked 13 economists how to fix things. All back the RBA governor over the treasurer (theconversation.com)
Authors: Isaac Gross, Lecturer, Monash University
Read more http://theconversation.com/the-rba-has-a-new-brain-it-has-thoughts-on-whatll-happen-after-interest-rates-hit-zero-126765