Government policy to encourage home ownership has a long history in Australia. In 1918, for example, the War Service Homes Act made provision for 45 year loans to ex‐service personnel to facilitate home purchase. Since then, home ownership has been encouraged by a variety of measures. A short...

This paper analyses the e¤ectiveness of the spread between short and long term interest rates for predicting GDP growth in Australia, and whether the predictive relation deteriorates, as theory suggests, with the adoption of a credible ination-targeting regime. We test whether predic- tive...

Using a Solow-Swan model with a stochastic saving rate and stochastic productivity we analyse the distributions of parameter estimates that emerge under various choices of technology, and of the dimension of the panel on which cross-section regressions are based. There are distinct asymmetries...

This note analyses the inflation-targeting model that underlies recent textbook expositions of the Aggregate Demand-Aggregate Supply approach used in introductory courses in macroeconomics. The paper shows how numerical simulations of a model with inflation inertia can be used as a tool to help...

The equations below provide an algebraic example of the AD-AS model in G.Wells, 'Teaching Aggregate Demand and Supply Models", Journal of Economic Education. The initial equilibrium is illustrated in the diagram on this sheet.