Premium
An Investigation into the Major Causes 01 Australia's Recent Inflation and Some Policy Implications *
Author(s) -
BOEHM ERNST A.,
MARTIN VANCE L.
Publication year - 1989
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1989.tb00673.x
Subject(s) - economics , inflation (cosmology) , macroeconomics , monetary policy , government (linguistics) , monetary economics , government expenditure , keynesian economics , public finance , linguistics , philosophy , physics , theoretical physics
This paper investigates the major causes of Australia's recent inflation with special emphasis on the 1970s and early 1980s A general model of inflation is formulated based upon a vector auto‐regression The main empirical finding is that increases in wages and import prices and more recently in money have been significant causal factors of Australia's inflationary experience. Government current expenditure is found to contribute passively to cost‐push inflation