1. Monetary Policy And Capital Flow
... interest rates that added incentive for foreigners to send their funds to Australia was a difference between the policy being followed domestically and the policies in other countries. For example, in 1970-71 the United States was following a relatively expansionary policy when Australian ... makers to consider when enacting monetary policy. Porter developed a model to test his hypothesis that capital flows are induced by monetary policy. He reduced 11 simultaneous equations to come up with this monetary model that estimates foreign capital flows: Eq. 1) TC = a + b1*CR + b2*CY + b3*CW* ...
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- Approx Pages: 11
- Has Bibliography
- Grade Level: High School