Australia has experimented with policy based on the monetarist policy prescription of monetary targeting.

Question

Quizplus · Accepted Answer

Yes, Australia has implemented monetary targeting policies in the past. This policy approach involves setting a specific target for the growth of money supply in the economy and using monetary policy tools to achieve that target, with the aim of controlling inflation and stabilizing economic growth. Australia adopted a monetary targeting framework in the late 1980s and early 1990s under the guidance of the Reserve Bank of Australia (RBA). However, over time, the RBA has shifted away from this approach towards more flexible inflation targeting.

Australia Has Experimented with Policy Based on the Monetarist Policy