The paper gives an overview of recent work in the development of the RBII macroeconomic model, focussing on adjustments designed to reflect the post-deregulation financial environment. Changes to the RBII model have been made in two main areas. First, a clearing market for short-term funds has...

This paper investigates simple monetary policy rules using a theoretical model of a small open economy. The anlysis is intended to highlight two problems in policy formulation that are of particular importance to Australia: instability of the money demand function, and exposure of the economy to...

Economic theory offers two distinct approaches to the modelling of interest rates. At the microeconomic level, interest rates are modelled as an outcome of intertemporal optimisation by investors, so that real interest rates are determined entirely by the real variables that characterise risk....

This paper provides a theoretical analysis of monetary policy rules specified in terms of an interest rate instrument, in contrast to the usual assumption that the instrument is a monetary quantity. The analysis is presented using a neoclassical dynamic model. It begins by summarising some...

This book examines poverty as a structural problem caused by the way economic systems operate. It poses a simple question: Why do poor people earn less? Case studies in Bolivia, Brazil, Chile, Colombia, Costa Rica and Peru find the poor caught in a vicious circle. They lack sufficient access to...

This book breaks away from the exclusively macroeconomic focus of development studies to bring the spotlight to the place where decisions are made: households. Complementing this microeconomic view with an aggregate approach, this volume uncovers clues to declining fertility, skyrocketing female...

This book breaks away from the exclusively macroeconomic focus of development studies to bring the spotlight to the place where decisions are made: households. Complementing this microeconomic view with an aggregate approach, this volume uncovers clues to declining fertility, skyrocketing female...

This book examines poverty as a structural problem caused by the way economic systems operate. It poses a simple question: Why do poor people earn less? Case studies in Bolivia, Brazil, Chile, Colombia, Costa Rica and Peru find the poor caught in a vicious circle. They lack sufficient access to...