This paper tests, using Australian data, the proposition that only unanticipated monetary growth infl uences real variables. The methodology used is that of L. Leiderman ( 1980) and F. S. Mishkin (1982). In tests using the unemployment rate as a real variable, it is found that the data...

In this paper we investigate the effect of financial deregulation on the relationship between the macro-economy and the share market within the framework of a VAR using quarterly Australian data for four variables - aggregate share prices, real output, the term premium and the default premium....