How does monetary policy affect welfare? Estimates based on life evaluation & emotional well-being.
My paper called "How does monetary policy affect welfare? Some new estimates using data on life evaluation and emotional well-being", coauthored with Lina El-Jahel at the University of Auckland and Hamed Shafiee (who is a former PhD student now working at the Productivity Commission) has been accepted for publication in the Journal of Money, Credit and Banking in the United States. It is about how a Central Bank like our Reserve Bank of NZ can set monetary policy so as to achieve high levels of well-being.
Although the paper has been a Motu Working Paper in Wellington for several years (see below) and is widely available, the Reserve Bank nor Finance Minister have never shown the remotest interest in this kind of work despite telling the media every other day how "well-being" is their focus. So much for "evidence-based" policy-making & being "guided by the science" which has been our government's mantra these years. It certainly doesn't apply in any way when it comes to how best to manage the Kiwi economy!