The Demand for Deposits in the Australian Manufacturing Sector.

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]