It is frequently argued that an increase in the rate of growth of money or credit will lead to an increase in economic activity. This paper addresses this issue by looking at the lead/lag relationship between a range of financial aggregates and several measures of economic activity for Australia...

This paper focusses on the empirical relationship between financial indicators (monetary and credit aggregates and short-term interest rates) and measures of economic activity. It aims to supplement an earlier paper by Bullock, Morris and Stevens (1988) (BMS), which explored these issues. BMS...