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Assessing the Impact of the U.S. Macroeconomic Policies and Inflation Rates on the Australian Economy

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  • Burdekin, Richard C K

Abstract

A three-equation system is specified with Australian monetary base growth, the domestic budget deficit, and the domestic inflation rate as dependent variables. Lagged values of these three variables and their U.S. counterparts are entered as explanatory variables in each equation. Results for 1967-83 suggest a possible effect of lagged U.S. monetary base growth on Australian monetary base growth plus a positive direct impact of U.S. inflation on Australian inflation. Copyright 1992 by The Economic Society of Australia.

Suggested Citation

  • Burdekin, Richard C K, 1992. "Assessing the Impact of the U.S. Macroeconomic Policies and Inflation Rates on the Australian Economy," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 16-30, March.
  • Handle: RePEc:bla:ecorec:v:68:y:1992:i:200:p:16-30
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