We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Monetary Policy and Capital Inflow.
- Authors
Murray, Gordon L.
- Abstract
Capital inflow has been depicted in the model developed by Pentti Kouri and Michael Porter as being determined exclusively by monetary forces, with GNP entering the equation through its impact on the demand for money. If this is correct, disaggregation of GNP by investment and non-investment spending has a significant effect on the estimates, suggesting that capital inflows have direct purposes which are not well represented in a purely monetary model. An attempt is made to construct a money policy equation as the second part of a simultaneous system depicting the interplay of monetary policy and capital inflow. In spite of claims to the contrary, it is found that simultaneous estimation gives results which differ considerably from those of single-equation methods.
- Subjects
AUSTRALIA; MONETARY policy; CAPITAL movements
- Publication
Economic Record, 1978, Vol 54, Issue 146, p271
- ISSN
0013-0249
- Publication type
Article
- DOI
10.1111/j.1475-4932.1978.tb00338.x