This article examines the effects of increased capital market integration on Australia's external liabilities, total assets and national wealth using an inter-temporal approach. Stylised national balance sheets-then provide summary statements of how these aggregates changed following the...

Unexpected inflation, disinflation or deflation cause arbitrary income transfers between an economy's borrowers and lenders. This redistribution results from distorted real interest rates that are too high when price level changes are over-predicted and too low when they are under-predicted....