We use a variety of techniques to examine the nature and degree of co-movement among Australian state business cycles. Our results indicate that these cycles move quite closely together, with particularly strong links between the cycles of the larger states. This finding is robust to a range of...

This paper estimates a range of single-equation models of inflation for Australia. We find that traditional models, such as the expectations-augmented standard Phillips curve or mark-up models, outperform the more micro-founded New-Keynesian Phillips curve (NKPC) in explaining trimmed mean...

This paper looks at the determinants of national manufactured exports through the use of a panel of Australian states. The panel approach is taken to assess whether the coefficient instability present in direct estimates of export elasticities can be alleviated by utilising the cross-state...

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One of the recurring themes in the literature on financial systems is whether financial integration – that is, openness in the domestic and international financial system – has real, structural economic effects. This paper examines the effect of financial openness on the consumption of...

This paper considers whether capital is a significant constraint on employment in Australia. We calculate the level of capital-constrained employment for ten sectors of the Australian economy. The calculations suggest that the manufacturing; mining; transport, storage and communication and...

The two recently developed Australian indexes of leading indicators have received much attention in the press. Despite this, relatively little is known about their usefulness in forecasting the associated indexes of coincident indicators (i.e., measures of the business cycle) or any activity...

In April 1993, the Basle Committee on Banking Supervision released a series of consultative papers relating to the supervisory treatment of market risk within banks' trading portfolios. The papers proposed a method of allocating capital to cover risk from banks’ trading positions in debt...

This paper provides a survey of ways in which financial innovations may affect the making of monetary policy. This subject has recently become more topical because of both the increased importance of monetary policy and the increasing pace of financial innovation. The analysis makes use of the...

This paper develops an empirically constant, data-coherent, error correction model for inflation in Australia. The level of consumer prices is a mark-up over domestic and import costs, with adjustments for dynamics and relative aggregate demand. We address issues of cointegration, general to...