Research Discussion Paper – RDP 8812 International Interest Rate Linkages and Monetary Policy: The Case of Australia

Contents

• Introduction
• Structural Background
• The Main Questions
• The Transmission of Monetary Policy
• Conclusions
• Appendix 1
• Appendix 2
• References

This paper was prepared for a meeting on international interest rate linkages at the Bank for International Settlements (BIS). The meeting took place in Basle, Switzerland, on 16 and 17 November 1988. The paper was organised and presented by Ian Macfarlane, but it also contained major contributions by other members of the Research Department of the Reserve Bank. In particular, most of Section 2, 3a and 3b were prepared by Glenn Stevens. Section 3c part (i) and Appendix 1 were the work of Dirk Morris, and Section 3c part (ii) and Appendix 2 were the work of Malcolm Edey. Useful comments were also made by Ric Battellino, Adrian Blundell-Wignall, Warwick McKibbin, Warren Tease and Rob Trevor. The questions addressed in the paper were contained in a questionnaire prepared by the BIS. Palle Schelde Andersen of the BIS also made some helpful comments on this paper.