RBA paper on optimal monetary policy

The RBA Discussion Paper "Optimal monetary policy with real-time signal extraction from the bond market" sets up a model where the central bank uses real-time data from the bond market together with standard macroeconomic indicators to estimate the current state of the economy more efficiently.

The timeliness of bond market data allows for quicker responses of monetary policy to disturbances compared to the case when the central bank has to rely solely on collected aggregate data. The information

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