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Comments on the interdependence of monetary policy and capital flows in Australia. Description of the Porter-Kouri model of capital flows in balance of payments; Advantages in using the model; Details on the equations used in the study to understand the capital flows.

Examines the use of alternative approach in analyzing price expectations series in Australia. Comparison between the adaptive and extrapolative expectations models; Advantage of the adaptive model; Limitations of the price expectations series.

This paper presents a set of equations explaining the advances of Australian trading banks to various subgroups of customers. The seven subgroups examined are (i) agriculture, grazing and dairying; (ii) manufacturing; (iii) transport, storage and communication; (iv) finance; (v) commerce; (vi) building and construction; and (vii) persons. These equations are useful because they allow us to obtain a measure of the relative importance of the variables which have been suggested as the major determinants of the amount of advances outstanding. For example, the equations allow us to test the hypothesis that advances are sensitive to changes in interest rates. Moreover, these disaggregated advances equations provide an insight into the sectoral behaviour of the economy and have implications for the conduct of monetary policy. If these equations differ from subgroup to subgroup, the effect of changes in monetary policy will depend on the distribution of the initial impact of the changes over the subgroups. [ABSTRACT FROM AUTHOR]

The aim of this paper is to examine the demand for deposits in the Australian manufacturing sector. It therefore deals with a comparatively small component of the Australian money supply. Goldfeld [6] has argued that it is desirable to disaggregate money holdings by type of asset and holder. A complete model can then be developed for each category, allowing us to determine the appropriate explanatory variables for each case. This study deals with one type of holder and with two classes of deposits which form part of the money supply. It therefore represents a first step in the complete analysis suggested by Goldfeld. This study and the study of Albon and Valentine [1] represent the only work which has been done on the Australian demand for money based on a disaggregation by holder. However, the analysis reported by Albon and Valentine covers all the nonfarm sectors and it is directed towards measuring the effect of price expectations on the demand for money. Therefore, a complete theoretical framework is not developed for each sector. An attempt has been made in this paper to develop such a framework for the manufacturing sector. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine the relationships amongst the demand for workers, overtime, and inventory investment in the Australian economy. The basic argument of the paper is that these variables are closely related and that this relationship is particularly strong in the short run; the paths by which these variables are adjusted to theft equilibrium or long-run levels are closely related. These assertions are supported by the empirical evidence presented in the paper. It is assumed that the generalized adjustment model provides an adequate representation of the process by which the variables are adjusted to their equilibrium values. The empirical equations which result from this assumption indicate that there are relationships amongst the paths of adjustment of these variables; some of the cross-adjustment coefficients are significantly different from zero. [ABSTRACT FROM AUTHOR]

There are many studies of investment expenditure which include an index of share prices amongst the explanatory variables. The variable is usually regarded as a proxy for expectations about profits or sales. For example, Kirkwood [23] uses common stock prices as an index of profitability in his investment function. An attempt has been made in recent discussions to provide a satisfactory theoretical basis for the inclusion of this variable by relating it to Tobin's theory of investment. See, for example. Bischoff [5], Bosworth [6] and Engle and Foley [15]. One aim of the present study is to estimate an investment function of this type for the Australian economy over the period 1921-22 to 1938-39. The second major aim of the study is to develop a model to explain share prices and to subject it to an empirical test. Temin [32] has criticised Kirkwood's assumption that share prices are exogenous and argues that the behaviour of share prices in the US in the depression period can be explained to a large extent by movements in corporation earnings. He concludes that movements in share prices can be regarded as an effect of the depression rather than a cause of it. The equation for share prices developed in this paper incorporates the variables which determine company profits and it is therefore consistent with Temin's viewpoint. [ABSTRACT FROM AUTHOR]

The aim of this paper is to discuss cyclical and seasonal movements in the share of the gross operating surplus of companies in the Australian national income and to attempt to provide some explanation for these movements. Regression techniques are used for this purpose; seasonal dummy variables are used to measure quarterly seasonal variation and a standard Australian business cycle indicator is used to measure cyclical variation. The paper is divided into two parts. In the first part we describe the data and the estimation procedures used in the study and in the second part we present equations describing the cyclical and seasonal variation in income shares and attempt to explain these results. [ABSTRACT FROM AUTHOR]

In this paper we present some empirical equations explaining the Australian nonbank public's demand for very liquid assets. Very liquid assets are financial assets which can be converted into cash on demand. Four assets fell into this category in the period we are studying: notes and coin, current deposits, savings deposits, and loans to the authorised dealers in the Short-term money market. We also present an equation explaining the public's demand for fixed deposits because this variable plays an important role in the equations for very liquid assets. This group of financial assets merits special attention because economists usually attribute a crucial role in the determination of economic activity to these assets; the study embraces all the assets included in the Reserve Bank's definition of "money". The assets are described in the following section, and in subsequent sections we discuss the specification of the equations, the estimation procedure used, and the empirical results. [ABSTRACT FROM AUTHOR]

Comments on the paper 'Financial Regulation in Australia,' by Kevin Davis, published in the September 1984 issue of the 'Australian Economic Review.' Major issues raised; Limitations of the assessments; Implications for fiscal policy-making.

Examines the effect of wage rates on profits, prices and employment in Australia. Contrary views on the issue between advocates for trade union and supporters of business interests; Use of a full model of the Australian economy and a model of the firm based on the work of Nordhaus, as well as that of Lau and Yotoppoulos, to explore the issue; Basic form of the equations for prices, employment and profits.

In this paper we present an empirical loan supply function for Australian trading banks. The work described here is part of a wider study of the Australian monetary sector, but it is worth describing in detail because it takes greater account of the unique characteristics of the Australian institutional structure than previous empirical studies, and because, in the course of the study, we were able to test certain hypotheses about trading bank lending. We were able to examine the possibility that bank lending is affected by general business conditions and the pressure of demand by borrowers. Also, the approach adopted in this paper allowed us to evaluate more thoroughly than previous studies the effect of Central Bank "moral suasion" on trading bank behaviour. [ABSTRACT FROM AUTHOR]

Presents several letters to the editor of The American Statistician journal published on December 1971. Confusions regarding pairwise zero correlation; Problem of fitting a regression line passing through the origin; Comment on the Work of Wani and Kabe concerning derivation of likelihood ratio.