AN ECONOMETRIC MODEL OF MONETARY INTERACTION IN AUSTRALIA.

Econometric models of the Australian economy have not yet reached the levels of completeness and complexity that are necessary for reliable forecasts and tenable assessments of economic policy. It is generally believed that this stage is more effectively reached by gradually extending comparatively simple aggregative systems to more complicated ones. The model presented in this paper serves primarily to fill an important gap remaining from the two previously published studies. It develops, in relatively simple terms, a monetary sector that is complementary to the investment and consumption relationships. [ABSTRACT FROM AUTHOR]