The Reserve Bank of Australia's (RBA) inflation targeting framework mitigated the "broader macroeconomic consequences" of the country's terms of trade boom in the first decade of the twenty-first century, according to a discussion paper published today by the central bank.

In Macroeconomic consequences of terms of trade episodes, past and present, Tim Atkin, Mark Caputo, Tim Robinson and Hao Wang describe the episode as the "largest and longest" increase in the country's terms of trade in its