How Australia Has Been Affected by US Monetary and Fiscal Policies: 1960 to 2022-Reference-Cited by-同舟云学术

How Australia Has Been Affected by US Monetary and Fiscal Policies: 1960 to 2022

Published:2024-02-23 Issue:3 Volume:17 Page:96
ISSN:1911-8074
Container-title:Journal of Risk and Financial Management
language:en
Short-container-title:JRFM

Author:

Leightner Jonathan¹^ORCID

Affiliation:

1. Hull College of Business, Summerville Campus, Augusta University, 1120 15th Street, Augusta, GA 30912, USA

Abstract

This paper uses Reiterative Truncated Projected Least Squares to estimate the effects of US monetary and fiscal policy on Australia using quarterly data between 1960 and 2022. When Australia had a fixed exchange rate (1960–1983), both US fiscal and monetary policies were positively correlated with Australia’s GDP, which fits the predictions of a small-country IS/LM/BP model with relatively immobile capital. When Australia had a flexible exchange rate (1984–2022), US fiscal policy was positively correlated with Australia’s GDP, but US monetary policy was negatively correlated with Australia’s GDP, which fits the predictions of a large-country IS/LM/BP model.

Publisher

MDPI AG

Link

https://www.mdpi.com/1911-8074/17/3/96/pdf

Reference16 articles.

1. Atif, Syed Muhammad, Sauytekova, Moldir, and Macdonald, James (2023, July 05). The Determinants of Australian Exchange Rate: A Time Series Analysis. MPRA Paper No. 12309. Available online: https://mpra.ub.uni-muenchen.de/42309/.

2. Bank for International Settlements (2023, July 05). Australia’s Experience with Capital Flows under Different Exchange Rate Regimes: Note for the CGFS Working Group on Capital Flows to Emerging Market Economies. Available online: https://www.bis.org/publ/cgfs33rba.pdf.

3. Berger, Wolfram, and Wagner, Helmut (2006). International Policy Coordination and Simple Monetary Policy Rules, International Monetary Fund. IMF Working Paper WP/06/164.

4. Scully, Gerald W., and Caragata, Patrick J. (2000). Taxation and the Limits of Government, Kluwer Academic.

5. Carlberg, Michael (2005). International Economic Policy Coordination, Springer.