Monetary Policy and Sentiment in the US and Australia

Rate cuts don't hurt confidence

Shane Wright in the SMH/Age previews my forthcoming article in the Australian Economic Review looking at the US and Australian evidence on the effect of changes in monetary policy on consumer confidence. Bottom line is there is little evidence for a perverse signalling effect on confidence from rate cuts.

The article will be published in the Policy Forum in the March issue of the AER, but message me if you would like a preview copy.