On Apr 5, 2010, at 8:56 PM, Mike Beggs wrote:
> And yeah this is what my dissertation's on, more or less (inflation
> and macroeconomic policy in Australia 1945-85)
So how did Australia's role as a commodity exporter enter into all this? The rule in the markets these days is that in times of rising commodity prices, you buy the A$ (and the C$). That would put a damper on domestic prices. How did that work during the era of fixed exchange rates? But countering the currency effect, strong commodity prices would heat up the Australian and Canadian economies, which would increase inflationary pressures. Since the 1945-80 period was one of generally rising commodity prices, how'd this effect Australian inflation, if at all?
Doug