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The Australian money market and the operations of the Reserve Bank of Australia: a comparative analysis

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  • Michael Dotsey

Abstract

This article provides a comparative analysis of central bank operating procedures in Australia and the United States. It also examines the effect that the structure of overnight money markets, reserve requirements, and central bank lending procedures have on monetary control in both countries. Evidently the Australian financial structure is such that an interest rate instrument provides superior control of money, a result that may not hold in the United States.

Suggested Citation

  • Michael Dotsey, 1987. "The Australian money market and the operations of the Reserve Bank of Australia: a comparative analysis," Economic Review, Federal Reserve Bank of Richmond, vol. 73(Sep), pages 19-31.
    • Handle: RePEc:fip:fedrer:y:1987:i:sep:p:19-31:n:v.73no.5
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    References listed on IDEAS

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    1. McCallum, Bennett T., 1981. "Price level determinacy with an interest rate policy rule and rational expectations," Journal of Monetary Economics, Elsevier, vol. 8(3), pages 319-329.
    2. Friedman, Milton, 1982. "Monetary Policy: Theory and Practice," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(1), pages 98-118, February.
    3. Levin, Fred J & Meulendyke, Ann-Marie, 1982. "Monetary Policy: Theory and Practice: A Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(3), pages 399-403, August.
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