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Aspects of Monetary Theory and Policy

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  • MICHAEL G. PORTER

Abstract

Contributions to monetary theory are reviewed, with emphasis on issues facing small open economies such as Australia. We consider the increased emphasis on information in commode it yes change, and the information content of different stabilization policies. ‘Ration’ expectations. Wealth effects, discretionary monetary policy and the alleged ‘death of Keynes’ are discussed in this context. The section on open economies discusses alternative models of exchange rate determination and monetary aspects of international transmission processes. The ‘problem’ of overshooting exchange rates is analyzed. The paper also reviews the debate on financial regulation and issues facing the Inquiry into the Australian Financial System.

Suggested Citation

  • Michael G. Porter, 1980. "Aspects of Monetary Theory and Policy," The Economic Record, The Economic Society of Australia, vol. 56(152), pages 1-16, March.
    • Handle: RePEc:bla:ecorec:v:56:y:1980:i:152:p:1-16
    DOI: 10.1111/j.1475-4932.1980.tb01648.x
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    References listed on IDEAS

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    Cited by:

    1. A. Petridis, 1984. "Prospects for the Australian Economy in 1984," The Economic Record, The Economic Society of Australia, vol. 60(1), pages 1-15, March.

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