Australia

Do trade costs explain macroeconomic puzzles?

Research published by the Reserve Bank of Australia finds some evidence that trade costs do, at least in part, explain three monetary policy puzzles; the purchasing power parity real exchange rate persistence puzzle, the Feldstein-Horioka saving…

RBA deputy examines causes of credit expansion

An increase in household borrowing has led to the latest boom in lending lasting longer than previous periods of credit expansion, according to Ric Battelino, the deputy governor of the Reserve Bank of Australia.

Bollard defends monetary policy framework

Alan Bollard, the governor of the Reserve Bank of New Zealand said yesterday that if the central bank were to aim for exchange rate stability the price to be paid would be big swings in interest rates.

Australia keeps benchmark rate unchanged

As widely expected, the Reserve Bank of Australia left its overnight cash rate target unchanged on Wednesday at an 11-year high of 6.5%. The central bank had previously raised borrowing costs on 8 August, the first move since November last year.

Australia announces ATM reforms

The Reserve Bank of Australia said it will introduce reforms that will give the public more information on the cost of using ATMs.

RBA's Stevens testifies to lawmakers

The Reserve Bank of Australia's governor, Glenn Stevens, and three senior officials were grilled on the impact of subprime, models used for forecasting and the prospects interest rates in an election year at this House of Representatives hearing.

Monetary policy and credit constraints

This research discussion paper from the Reserve Bank of Australia suggest that while effect of a change in the monetary policy interest rate on aggregate demand may be larger at higher levels of indebtedness, the extent of credit constraints may be at…

Australia's Stevens warns on CDOs

Glenn Stevens, the governor of the Reserve Bank of Australia, has warned that the country's local government bodies may have invested in collateralised debt obligations (CDOs) without understanding their risks.

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