I have also noted that the framework in Australia has not changed much over the 25 years of its operation, with the notable exception of communication. So does that mean that the current configuration of the inflation target is the most appropriate or that even that is the most appropriate framework for monetary policy? What changes could be contemplated?
Those questions are going to be addressed in other papers at this conference. But let me raise some here and discuss issues worth considering around each of them. The first is the role of financial stability in an inflation-targeting framework.