The close integration of Australian and New Zealand financial markets and the similarity of the monetary policy regimes provide the perfect backdrop for testing the empirical relevance of uncovered interest rate parity (UIP) in Oceania. We find that changes in the bilateral exchange rate have...

The global financial crisis and subsequent recession have highlighted the huge costs that financial imbalances can impose on an economy. Because the financial crisis was in large part the result of specific vulnerabilities in the banking sector, reform proposals are accordingly focused on...

This note analyses the relationship between actual and expected Official Cash Rate (OCR) changes and subsequent exchange rate movements. It concludes that there has been a weak positive relationship between OCR changes (or expected changes) and the currency, but that this only applies over very...

The repurchase (‘repo’) market was a key channel through which the Global Financial Crisis was transmitted. With activity in these markets now recovering, pressure is mounting for regulators elsewhere to increase the resilience of repo markets so that they become a more stable source of...

Zur Existenz eines Kreditkanals in der Geldpolitik in Deutschland Diese Untersuchung befaßt sich mit dem Kreditkanal in der Geldpolitik in Deutschland. Sie findet kaum Anhaltspunkte für die Existenz des Kreditkanals und bestätigt gleichzeitig den bekannten Transmissionsweg der Geldpolitik...

In open economy, a choice can be made between two measures of inflation for use as a target variable: CPI inflation or domestic inflation. This paper considers flexible and strict inflation targeting strategies and explores the circumstances under which a domestic inflation target is preferred...