Monetary policy in a heterogeneous monetary union: the Australian experience
AbstractAustralia is a monetary union with strong regional specialization. Manufacturing and service industries are located in the population centres on the south-eastern seaboard, and mining and pastoral activities take place in the interior and north of the continent. Monetary policy affects the interior and north more strongly than the south-eastern seaboard because Australian primary goods are mostly exported and the exchange rate provides the main transmission channel for monetary policy. The Reserve Bank of Australia must consider the economic interests of the interior and north and the south-eastern seaboard. Since monetary policy cannot differentiate between regions, there is a need for interregional macroeconomic risk-sharing.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 38 (2006)
Issue (Month): 21 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
Other versions of this item:
- Ernst Juerg Weber, 2004. "Monetary Policy in a Heterogeneous Monetary Union: The Australian Experience," Economics Discussion / Working Papers 04-08, The University of Western Australia, Department of Economics.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mojon, Benoît & Peersman, Gert, 2001. "A VAR description of the effects of monetary policy in the individual countries of the euro area," Working Paper Series 0092, European Central Bank.
- Sebnem Kalemli-Ozcan & Bent E. Sorensen & Oved Yosha, 2004.
"Asymmetric Shocks and Risk Sharing in a Monetary Union: Updated Evidence and Policy Implications for Europe,"
2004-05, Department of Economics, University of Houston.
- Kalemli-Ozcan, Sebnem & Sorensen, Bent E & Yosha, Oved, 2004. "Asymmetric Shocks and Risk Sharing in a Monetary Union: Updated Evidence and Policy Implications for Europe," CEPR Discussion Papers 4463, C.E.P.R. Discussion Papers.
- Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
- Hyeon-Seung Huh, 1999. "How well does the Mundell-Fleming model fit Australian data since the collapse of Bretton Woods?," Applied Economics, Taylor & Francis Journals, vol. 31(3), pages 397-407.
- Gerald Carlino & Robert Defina, 1998. "The Differential Regional Effects Of Monetary Policy," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 572-587, November.
- Dixon, R. & Shepherd, D., 2000.
"Trends and Cycles in Australian State and Territory Unemployment Rates,"
Department of Economics - Working Papers Series
730, The University of Melbourne.
- Dixon, Robert & Shepherd, David, 2001. "Trends and Cycles in Australian State and Territory Unemployment Rates," The Economic Record, The Economic Society of Australia, vol. 77(238), pages 252-69, September.
- Nicholas de Roos & Bill Russell, 2000.
"The Exports Transmission Mechanism of Foreign Business Cycles to Australia,"
Dundee Discussion Papers in Economics
110, Economic Studies, University of Dundee.
- de Roos, Nicolas & Russell, Bill, 2002. "The Exports Transmission Mechanism of Foreign Business Cycles to Australia," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 50-59, March.
- Aksoy, Yunus & De Grauwe, Paul & Dewachter, Hans, 2002.
"Do asymmetries matter for European monetary policy?,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/101581, Katholieke Universiteit Leuven.
- Aksoy, Yunus & De Grauwe, Paul & Dewachter, Hans, 2002. "Do asymmetries matter for European monetary policy?," European Economic Review, Elsevier, vol. 46(3), pages 443-469, March.
- Volker Clausen & Hans-Werner Wohltmann, 2002.
"Monetary and Fiscal Policy Dynamics in an Asymmetric Monetary Union,"
- Clausen, Volker & Wohltmann, Hans-Werner, 2005. "Monetary and fiscal policy dynamics in an asymmetric monetary union," Journal of International Money and Finance, Elsevier, vol. 24(1), pages 139-167, February.
- Clausen, Volker & Wohltmann, Hans-Werner, 2002. "Monetary and fiscal policy dynamics in an asymmetric monetary union," IBES DiskussionsbeitrÃ¤ge 119, University of Duisburg-Essen, Faculty for Economics and Business Administration.
- Ignazio Angeloni & Anil K. Kashyap & Benoit Mojon & Daniele Terlizzese, 2003. "Monetary Transmission in the Euro Area: Does the Interest Rate Channel Explain it All?," NBER Working Papers 9984, National Bureau of Economic Research, Inc.
- Dixit, Avinash, 2001. "Games of monetary and fiscal interactions in the EMU," European Economic Review, Elsevier, vol. 45(4-6), pages 589-613, May.
- Adam Elbourne & Jakob de Haan, 2004. "Asymmetric Monetary Transmission in EMU: The Robustness of VAR Conclusions and Cecchetti’s Legal Family Theory," CESifo Working Paper Series 1327, CESifo Group Munich.
- Breusch, T S, 1978. "Testing for Autocorrelation in Dynamic Linear Models," Australian Economic Papers, Wiley Blackwell, vol. 17(31), pages 334-55, December.
- Avinash Dixit & Henrik Jensen, 2003. "Common Agency with Rational Expectations: Theory and Application to a Monetary Union," Economic Journal, Royal Economic Society, vol. 113(489), pages 539-549, 07.
- Godfrey, Leslie G, 1978. "Testing against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1293-1301, November.
- Thomas Walker & David Norman, 2004. "Co-movement of Australian State Business Cycles," Econometric Society 2004 Australasian Meetings 334, Econometric Society.
- Robert Dixon & David Shepherd, 2009.
"Regional Dimensions of the Australian Business Cycle,"
Department of Economics - Working Papers Series
1088, The University of Melbourne.
- Robert Dixon & David Shepherd, 2013. "Regional Dimensions of the Australian Business Cycle," Regional Studies, Taylor and Francis Journals, vol. 47(2), pages 264-281, February.
- Ridhwan, M.M. & Nijkamp, P. & Rietveld, P. & Groot, H.L.F. de, 2008. "Regional development and monetary policy : a review of the role of monetary unions, capital mobility and locational effects," Serie Research Memoranda 0007, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.