The expectations theory of the term structure of interest rates states that the yields on financial assets of different maturities are related primarily by market expectations of future yields. The expectations theory has occupied a prominent place in both theoretical and policy debates at...

Employment in Australia over the past five years has recorded one of the strongest increases in the post-war period. This experience stands in marked contrast to that of the mid 1970s and early 1980s when demand for labour in Australia was very weak. Recent developments provide an opportunity to...

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The Australian dollar was floated in December 1983. Since that time the exchange rate has become more volatile and has depreciated significantly. The aim of this paper is to examine the behaviour of the foreign exchange market since the float. In particular, the paper considers whether the joint...

Recent theoretical developments have shown that cash flows and the structure of a firm’s balance sheet may have an important influence on investment. Establishing a link between cash flows, leverage and investment provides insights into the way that monetary policy and cyclical factors more...

The paper considers recent trends in the provision of finance and the factors that are likely to influence its future course. It emphasises how the interaction between the allocation of household wealth and the financing needs of firms shape the structure and evolution of financial systems. The...

This paper examines the behaviour of the balance of payments in the 1980s. In particular, it identifies the factors that underpinned the persistently high current account deficits experienced during the decade. In doing so, it attempts to reconcile two approaches to analysing the current...

This paper looks at the evolution of corporate balance sheets and investment over the past few years. (Lowe and Shuetrim (1992) also provide information on the evolution of corporate gearing in the 1980s. This paper focuses on the more recent experience of balance sheet restructuring and...