期刊名称：The Journal of Business Economics and Environmental Studies
印刷版ISSN：2671-4981
电子版ISSN：2671-499X
出版年度：2019
卷号：9
期号：3
页码：5-9
DOI：10.13106/jbees.2019.vol9.no3.5
出版社：Korea Distribution Science Association
摘要：Purpose – This paper examines whether fiscal and monetary expansion would affect output in Australia. Research design, data, and methodology – An extended IS-LM model which describes the equilibrium in the goods market and the money market is applied. The real effective exchange rate and the real stock price are included in order to determine whether there may be any substitution or wealth effect. The sample consists of Annual data ranging from 1990 to 2018. The GARCH process is used in empirical work to correct for potential autoregressive conditional heteroscedasticity. Results – Expansionary fiscal policy reduces output; whereas, expansionary monetary policy raises output. In addition, real appreciation of the Australian dollar, a lower U.S. interest rate, a higher real stock price or a lower expected inflation would increase output. The finding that expansionary fiscal policy has a negative impact on real GDP suggests that the negative crowding-out effect on private spending dominates the positive impact. Conclusions – Fiscal prudence needs to be pursued. Real depreciation of the Australian dollar hurts output. Monetary tightening in the U.S. generates a negative effect on Australia’s output. A healthy stock market is conducive to economic growth as higher stock prices tend to result in the wealth and other positive effects, increasing consumption and business spending.
关键词：Fiscal Policy; Monetary Policy; Exchange Rates; Expansionary Policy in Australia.
