Research Discussion Paper – RDP 9208 Credit Supply and Demand and the Australian Economy

Contents

• Introduction
• Business Credit and Investment
• Total AFI Credit and GDP
• Credit and the Economy
• Conclusions
• Appendix A: Maximum – Likelihood Estimation of the Demand and Supply of Business Credit
• Appendix B: The Loan Rate and Instrumental Variables
• Appendix C: Order of Integration Tests
• Data Appendix
• References

The views expressed in this paper are those of the authors and do not necessarily reflect those of the Reserve Bank of Australia. A number of colleagues provided helpful comments. Those of Ian Macfarlane, Stephen Grenville, Glenn Stevens and Philip Lowe were particularly helpful.