AUSTRALIAN MONEY SUPPLY ANALYSIS: Direct Controls and the Relationship Between the Monetary Base, Secondary Reserves and the Money Supply
Access status:
Open Access
Type
Working PaperAuthor/s
Sharpe, Ian G.Abstract
A comparison of the standard deviation of the difference in growth rates of the momentary base and money for the U.S. and Australia indicates much larger variation in the latter case. The larger Australian deviation is explained by differing institutional frameworks within and ...
See moreA comparison of the standard deviation of the difference in growth rates of the momentary base and money for the U.S. and Australia indicates much larger variation in the latter case. The larger Australian deviation is explained by differing institutional frameworks within and through which monetary policy functions in the two countries and by the somewhat greater reliance on direct controls as monetary policy instruments in Australia. When allowance is made for the unique Australian institutional context, reasonably close and stable relationships are found between the monetary base and money and between a liquidity augmented monetary base and money.
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See moreA comparison of the standard deviation of the difference in growth rates of the momentary base and money for the U.S. and Australia indicates much larger variation in the latter case. The larger Australian deviation is explained by differing institutional frameworks within and through which monetary policy functions in the two countries and by the somewhat greater reliance on direct controls as monetary policy instruments in Australia. When allowance is made for the unique Australian institutional context, reasonably close and stable relationships are found between the monetary base and money and between a liquidity augmented monetary base and money.
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Date
1977-06-01Publisher
Department of EconomicsDepartment, Discipline or Centre
EconomicsShare