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Capital Markets and Capital Formation in Australia 1890–1945
Author(s) -
Merrett D.T.
Publication year - 1997
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/1467-8446.00014
Subject(s) - capital market , disenchantment , capital formation , fixed capital , capital (architecture) , divestment , business , financial capital , market economy , financial system , economics , finance , political science , geography , human capital , archaeology , politics , law
This survey article examines the interaction between the domestic capital markets and capital formation in Australia from the 1890s up to the end of World War II. The disenchantment of the City of London with Australian securities in the 1890s opened a window for the development of domestic capital markets. It was the demands of the government for funds, especially during both wars, that transformed the scale and character of local markets. Local deposit taking institutions and stock exchanges handled a sufficient volume of domestic savings to fund the lion's share of both public and private sector capital formation.