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An Investigation into the Major Causes 01 Australia's Recent Inflation and Some Policy Implications

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  • ERNST A. BOEHM
  • VANCE L. MARTIN

Abstract

This paper investigates the major causes of Australia's recent inflation with special emphasis on the 1970s and early 1980s A general model of inflation is formulated based upon a vector auto‐regression The main empirical finding is that increases in wages and import prices and more recently in money have been significant causal factors of Australia's inflationary experience. Government current expenditure is found to contribute passively to cost‐push inflation

Suggested Citation

  • Ernst A. Boehm & Vance L. Martin, 1989. "An Investigation into the Major Causes 01 Australia's Recent Inflation and Some Policy Implications," The Economic Record, The Economic Society of Australia, vol. 65(1), pages 1-15, March.
    • Handle: RePEc:bla:ecorec:v:65:y:1989:i:1:p:1-15
    DOI: 10.1111/j.1475-4932.1989.tb00673.x
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    References listed on IDEAS

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    Cited by:

    1. Akhand Akhtar Hossain, 2019. "Does money have a role in the inflation process? Evidence from Australia," Australian Economic Papers, Wiley Blackwell, vol. 58(2), pages 113-129, June.
    2. Paul Miller & Charles Mulvey, 1993. "What Do Australian Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 315-342, September.
    3. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611.
    4. Karfakis, Costas I & Parikh, Ashok, 1993. "A Cointegration Approach to Monetary Targeting in Australia," Australian Economic Papers, Wiley Blackwell, vol. 32(60), pages 53-72, June.
    5. Imad Moosa, 1998. "A composite leading indicator of Australian inflation," Applied Economics Letters, Taylor & Francis Journals, vol. 5(11), pages 711-713.
    6. Akhand Akhtar Hossain, 2019. "How justified is abandoning money in the conduct of monetary policy in Australia on the grounds of instability in the money‐demand function?," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(2), July.

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