The Bank Credit Transmission Channel of Monetary Policy in Australia
Journal Title: International Journal of Financial Economics - Year 2016, Vol 5, Issue 2
Abstract
This paper intends to test for the existence of credit channel of monetary policy in Australia using aggregate seasonal data from 1994.1 to 2011.4. Based upon Johansen trace test, two co integrating relationships are found and can be identified respectively as loan demand and supply functions. With the tests for a number of exclusion and exogeneity restrictions, the paper concludes that loan supply is negatively related to interbank cash rate, suggesting the existence of credit channel of monetary policy in Australia. Furthermore, a shortterm dynamic analysis shows RBA plays an important role in equilibrium-correcting in the supply of loan. And inflation rate is also found to be equilibrium-correcting in the long run supply equation.
Authors and Affiliations
Wensheng Lin, Yang Cheng
Financing Third World Development: Perspective of the African Development Bank (AfDB)
This paper provides an exposition on African Development Bank (AfDB) Group financial engagements to member countries in the form of loans, grants and equity participation using incidence analysis. Over Unit of Account...
Is There A Link Between Financial Sector Development And Economic Growth In Nigeria?
There is no consensus in the empirical literature on the causal links between financial sector development and economic growth. This paper investigates the long run and causal relationship between financial sector deve...
Impact of Investment on Stock Market Development in Nigeria
This paper empirically examined the impact of investment on stock market development in Nigeria from 2001-2010. Investment was proxy by gross fixed capital formation and stock market development proxy by market capital...
The Macro - Economic Consequences and Regulatory Challenges of Currency Counterfeiting In Nigeria
Currency otherwise regarded as paper money and coins constitutes a potent economic lubricant in Nigeria and all over the world. Its role as legal tender in promoting transactions in goods and services as well as the ov...
An Empirical Analysis of the Effect of Income Inequality on Economic Growth in West Africa
The study empirically examined the effect of inequality on economic growth in West Africa covering the period 1980-2011, and using panel data from various secondary sources. The fixed effect and random effect, generali...