This study analyses the effectiveness of exchange rate intervention in Australia during the post-float era (1983-1994). The rationale underpinning the switch to the floating regime and the mechanics and channels of sterilised intervention are critically reviewed in the Australian context. The...

Globalisation or the international integration of production and distribution has accelerated over the past two decades. Multinational enterprises (MNEs) or the transnational corporations (TNC) through foreign direct investment (FDI) have played a key role in the globalisation process. This...

The paper reviews some important macroeconomic tensions resulting from the phenomenon of financial integration. These macroeconomic tensions are illustrated using Australian perspectives. The deregulation of the Australian financial markets has increased capital mobility and profoundly changed...

The paper examines the evolution of monetary policy design in Australia which has culminated in the adoption of inflation targeting using the institutional mechanism of central bank independence. A Vector Error Correction Model is specified linking inflation to measures of central bank...

Australia’s inflation rate and inflation uncertainty during the post-float era 1983Q3-2006Q4 have acted as important barometers of Australia’s macroeconomic performance. The conceptualisation and measurement of the nexus between inflation and inflation uncertainty is subject to complex...

The heated debate over the sustainability of Australia's high current account deficit that raged over most of the fixed and floating exchange period was due to the failure of policymakers to shift from the Keynesian Mundell Fleming (KMF) paradigm which has been rendered obsolete by the floating...

Australia's inflation rate and inflation uncertainty during the post-float era 1983Q3-2006Q4 have acted as important barometers of Australia's macroeconomic performance. The conceptualization and measurement of the nexus between inflation and inflation uncertainty is subject to complex dynamics....

The role of FDI inflows and outflows to host countries and from the source countries emerged in the 1980s as the major vehicle technology transfer that accelerated the globalization or international integration of 25 leading OECD economies over a period of 25 years (1983-2007). Although...