##ers were desired by those households. many renters are happy with their current home, but are required to move because the lease expired or the landlord sold the property. if we are concerned about inequality of housing outcomes, perhaps we should focus less on the type of tenure, and more on security of tenure. that ’ s just a brief round - up of some of the issues we have been looking at recently. housing issues will always be with us, and will always be important to the functions of the reserve bank. that ’ s why we value conferences like this : the diverse perspectives offered help us see the bigger picture. i ’ m certainly looking forward to the rest of the discussion in this session. thank you for your time. 11 / 12 bis central bankers'speeches bibliography bachmann r and d cooper ( 2014 ), ‘ the ins and arounds in the u. s. housing market ’, federal reserve bank of boston working papers 14 – 3. dollman r, g kaplan, g la cava and t stone ( 2015 ), ‘ household economic inequality in australia ’, rba research discussion paper no 15. flatau p, m forbes, g wood, ph hendershott and l o ’ dwyer ( 2002 ), ‘ home ownership and unemployment : does the oswald thesis hold for australian regions? ’, murdoch university school of management and government working paper 189. hughson h, g la cava, p ryan and p smith ( 2016 ), ‘ the household cash flow channel of monetary policy ’, rba bulletin, september, pp 21 – 30. oswald aj ( 1999 ), ‘ the housing market and europe ’ s unemployment : a non - technical paper ', university of warwick, mimeo, unpublished manuscript. rba ( reserve bank of australia ) ( 2015 ), ‘ submission to the inquiry into home ownership ’, house of representatives standing committee on economics inquiry into home ownership, june. yates j ( 2011 ), ‘ explaining australia ’ s trends in home ownership ’, housing finance international, 26 ( 4 ), pp 6 – 13. 1 graphs showing this comparison are regularly published in the financial stability review. 2 see graph 3 in rba ( 2015 ). 3 who ‘ heads ’ a household is a matter of judgement. in these graphs, the head of each surveyed household is determined by applying certain criteria, in order, until a unique person is selected. these criteria are : in a registered marriage or de facto relationship ( and still living together

##eu – namely the green transition and digitalization – might put a positive pressure on the potential output growth. investments in green and digital technologies could boost labor productivity and foster sustainable growth. consequently, the ultimate question we policy makers must find answers to is which factors will be dominating in the near future. with such long - term developments and the current circumstances, how should we balance economic slowdown and increasing prices? to be more precise, what weight should we give to the taylor rule variables and what time dimension of projections should we focus on? there is some merit to believe that structural forces that push neutral interest rate lower such as demographics, globalization and digitalization may not fade out - globalization may be an exception to some extent as i tried to explain - and a threat of the too - low inflation may return to our agenda. in other words, if the interest rate changes affect prices in one - to - two years ’ time only, how strong should we be in reducing our monetary policy accommodation? nevertheless, this does not change the fact that in the current environment we must tighten monetary policy to keep inflation expectations from increasing to unsustainable levels. de - anchored inflation expectations would make it much more difficult for the central bank to achieve its mandate of price stability. overall, i think we should gradually raise rates to retain credibility. we must be apprehensive, that, as the neutral rate is currently much lower, we cannot increase policy rates to the levels seen 15 - 20 years ago. still, as of this moment, it is extremely important to prevent the situation in which inflation expectations become entrenched at significantly higher levels than our inflation targets over the medium term. looking at the longer horizon, at the next strategy review, it is worth discussing what monetary policy framework is mostly fit for the new issues that relate to climate change risks, retreating globalization, and returning geopolitical threats. to this end, i am grateful for this opportunity to exchange the views in this panel discussion. monetary policy