Exchange rates, interest rates and current account news: some evidence from Australia
AbstractThis paper investigates the Australian current account announcement effects on exchange rates and interest rates for the period July 1985 to December 1992. The results indicate that the Australian dollar depreciates and interest rate rise as a result of an announcement of larger than expected current account deficit, which is consistent with the portfolio balance effect. In addition, significant structural breaks are found and the analysis shows that after December 1989 the current news affect neither exchange rates nor interest rates.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Money and Finance.
Volume (Year): 14 (1995)
Issue (Month): 4 (August)
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Web page: http://www.elsevier.com/locate/inca/30443
Other versions of this item:
- Karfakis, C. & Kim, Suk-Joong, 1993. "Exchange Rates, Interest Rates and Current Account News: Some Evidence from Australia," Working Papers 189, University of Sydney, School of Economics.
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