This paper examines the effect of inflation on productivity growth in Australia. Broad historical correlations suggest a negative relationship between inflation and aggregate productivity growth. The low-frequency nature of the relationship, however, means it is difficult to establish...

This paper investigates the gains from the use of information technology in Australia during the 1990s using a growth accounting framework. We make use of new industry-level estimates of the productive capital stock. Our analysis suggests that Australia has done well out of the ‘new...

We use the multi-sector and multi-country G-Cubed model to explore the potential role of three major shocks – to productivity, risk premia and US monetary policy – to explain the large movements in relative prices between 2002 and 2008. We find that productivity shocks were major drivers of...