Assessing the Impact of US Macroeconomic Policies and Inflation Rates on the Australian Economy

Richard Burdekin

The Economic Record, 1992, vol. 68, issue 1, 16-30

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 US counterparts are entered as explanatory variables in each equation. Results for 1967‐83 suggest a possible effect of lagged US monetary base growth on Australian monetary base growth plus a positive direct impact of US inflation on Australian inflation.

Date: 1992
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