Hostname: page-component-cd9895bd7-jkksz Total loading time: 0 Render date: 2024-12-31T18:31:49.843Z Has data issue: false hasContentIssue false
  • English
  • Français

Deregulation and the Conduct of Monetary Policy

Published online by Cambridge University Press:  01 January 2023

M. Monadjemi  and
C. Kearney
M. Monadjemi
Affiliation:
School of Economics, University of New South Wales
C. Kearney
Affiliation:
School of Business & Technology, University of Western Sydney Macarthur
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

This paper examines the evolution of monetary policy in Australia since the mid 1980s when financial markets were rapidly deregulated. The paper discusses the conduct of monetary policy within the framework of monetary targeting and how deregulation affected this framework. Alternative strategies for conducting monetary policy are discussed. However, it is argued that since 1985, monetary authorities have often changed the focus of monetary policy with no specific framework within which the policy is implemented.

Deregulation has forced interest rates to become the main focus of monetary policy. But, since the deregulation of financial markets, the transmission mechanism by which interest rates affect the economy, has changed significantly.

Type
Article
Information
The Economic and Labour Relations Review , Volume 1 , Issue 2 , December 1990 , pp. 18 - 33
Copyright
Copyright © The Author(s) 1990

References

Australian Financial System (1981), Final Report of the Committee of Inquiry, Australian Government Publishing Service, Canberra 1980.Google Scholar
Australian Financial Systems Inquiry (1983), Report of the Review Group, Australian Government Publishing Service, Canberra.Google Scholar
Cagan, P. (1982), “The Choice Among Monetary Aggregates as Targets and Guide for Monetary Policy”, Journal of Money, Credit and Banking, November, pp. 661–686.CrossRefGoogle Scholar
Davis, R.G. (1979), “Broad Credit Measures as Targets for Monetary Policy”, Quarterly Review, Federal Reserve Bank of New York, Summer, pp. 13–22.Google Scholar
Fackler, J., Silver, A. (1982/83), “Credit Aggregates as Policy Targets”. Quarterly Review, Federal Reserve Bank of New York, Winter, pp. 2–9.Google Scholar
Friedman, B.M. (1982a), Time to Re-examine the Monetary Targets Framework”, New England Economic Review, March/April, pp. 15–23.Google Scholar
Friedman, B.M. (1982b), “Monetary Policy with a Credit Aggregate Target”, National Bureau of Economic Research, Working Paper No. 989.CrossRefGoogle Scholar
Friedman, B.M. (1982c), “Money, Credit and Non-Financial Economic Activity, an Empirical Study of Five Countries”, National Bureau of Economic Research, Working Paper No.1 1033.CrossRefGoogle Scholar
Home, J., Monadjemi, M. (1985), “Debt, Credit and Monetary Targeting in Australia”, Economic Record, June.Google Scholar
Jüttner, D.J. (1984), “Recent Developments in Monetary and Credit Aggregates”, Economic papers, September, pp. 59–84.CrossRefGoogle Scholar
Marsden, J.S., Jones, P.L. (1988), “Monetary and Exchange Rate Policy: A Volatility Based Perspective”, Economic papers, March, pp. 82–93.CrossRefGoogle Scholar
Mohl, A. (1985) “Changing Patterns of Financing”, Reserve Bank of Australia Bulletin, May, pp. 737–743.Google Scholar
Monadjemi, M. (1988) “Money Credit and Economic Activity”, Economic Analysis and Policy, September, pp. 229–244.CrossRefGoogle Scholar
Morgan, D. (1990) The Evolution of Monetary Policy since Financial Deregulation, Paper presented at the Conference of Economists, University of New South Wales, October.CrossRefGoogle Scholar
Milbourne, R. (1990) “Money and Finance”, in Grenville, S. (ed.) The Australian Macroeconomy in the 1980s, proceeding of a conference, Reserve Bank of Australia, pp. 222–287.Google Scholar
Poole, W. (1970), “Optimal Choice of Monetary Policy in a Simple Stochastic Macro Model”, Quarterly Journal of Economics, 84 May, pp. 197–216.Google Scholar
Shields, B. (1988), “Australian Monetary Policy: The last two years”, Economic papers, March, pp. 16–33.Google Scholar