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The Evolution of A ustralian Monetary Policy in the 1950s
Author(s) -
Beggs Mike
Publication year - 2017
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/aehr.12027
Subject(s) - monetary policy , compromise , balance sheet , financial intermediary , economics , financial system , balance (ability) , central bank , business , monetary economics , finance , political science , medicine , law , physical medicine and rehabilitation
The 1950s in A ustralia was a decade of major change in both central banking and the financial system. The changes fed upon one another: financial innovation responded to monetary policy; the authorities adapted their strategy in response. The private banks resisted the harnessing of their balance sheets to policy, and a protracted process of conflict and compromise unfolded. Meanwhile, the growth of non‐bank financial institutions undermined bank‐centred policy. Official controls on bank interest rates opened a space for the new intermediaries. The central bank's attempt to restrain their growth contributed to a credit squeeze at the turn of the 1960s.