Australian money demand and interest-elasticity : a review of the 1980's

Klose, Scott A. (1990). Australian money demand and interest-elasticity : a review of the 1980's Honours Thesis, School of Economics, The University of Queensland.

       
Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
THE15425.pdf Full text Click to show the corresponding preview/stream application/pdf 7.07MB 0
Author Klose, Scott A.
Thesis Title Australian money demand and interest-elasticity : a review of the 1980's
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 1990
Thesis type Honours Thesis
Total pages 172
Language eng
Subjects 14 Economics
Formatted abstract The demand for money is a very important area of economic theory and research since it is one of the main determinants of economic activity. The objective of this thesis is to illustrate the changed nature of the demand for money in Australia following the extensive deregulation of financial markets.

There has been a large and somewhat exhaustive number of studies conducted on the role of the money supply as a key variable in the transmission mechanism. Studies relating to the demand for money have predominantly examined the stability of money demand However, due to a current strong reliance on monetary policy to correct demand induced imbalances in the Australian economy, it appears necessary to examine the interest-elasticity of money demand, an issue which has so far been sadly neglected in the Australian literature on financial sector deregulation.

This thesis is an attempt to address these deficiencies in the literature by examining the demand for money in the context of an open economy. In consideration of the interest-elasticity of money demand, we find that money demand may have become more sensitive to interest rates. We also find the rate of return on foreign assets may have become a significant determinant of the demand for money in Australia.


Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
 
Citation counts: Google Scholar Search Google Scholar
Access Statistics: 140 Abstract Views, 0 File Downloads  -  Detailed Statistics
Created: Mon, 22 Nov 2010, 11:19:37 EST by Ning Jing on behalf of The University of Queensland Library