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The demand for money in Australia: new tests on an old topic

de Brouwer, Gordon; Ng, Irene; Subbaraman, Robert


This paper addresses the integration of domestic financial markets in Western Pacific economies – an unexamined issue in the literature of international financial integration – by exploring the relationship between money market interest rates and deposit and loan interest rates. Rules for setting interest rates on deposits and loans are derived, and these are shown to be consistent with commercial banking practice and to capture recent key developments in the banking sectors of the region. An...[Show more]

CollectionsANU Research Publications
Date published: 1993
Type: Working/Technical Paper


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