This article derives new results of the Elasticity of Substitution (ES) between capital and labour and factor productivity for Australia, an economy which experienced major economic reform that substantially increased the flexibility of its labour, product and capital markets throughout the...

Introduction -- The global economy and external imbalances -- Global imbalances and exchange rates -- External imbalances and national income -- International capital mobility and national income -- External imbalances, exchange rates, and interest rates -- Money, exchange rates, and the balance...