Reserve Bank of Australia

Owning Institution:
Discussion paper

Smells like animal spirits: the effect of corporate sentiment on investment

Company-level investment is very sensitive to changes in the new sentiment indicator, even controlling for fundamentals, such as current and expected profits, as well as measures of company-level uncertainty. This paper explores the mechanisms that link investment to sentiment.
Discussion paper

The rise in household liquidity

This paper explores the determinants of liquidity across households and over time, using a range of household surveys for Australia. The authors find that household liquidity is strongly associated with life cycle factors, such as age and housing tenure.
Discussion paper

What is driving participation and diversity trends in economics? A survey of high school students

There has been a stark decline in the size and diversity of the Year 12 Economics student population in Australia since the early 1990s. This paper addresses 3 key questions to uncover what is driving these trends at Australia's high schools.
Discussion paper

Central bank communication: one size does not fit all

High-quality central bank communication can improve the effectiveness of monetary policy and is an essential element in providing greater central bank transparency. This paper investigates three important aspects of central bank communication - audience, readability and degree of reasoning.
Discussion paper

Monetary policy, equity markets and the information effect

How monetary policy affects the economy is a central question in macroeconomics. Standard economic thinking predicts interest rate cuts boost economic activity. This idea has recently been challenged by claims that changes in monetary policy have a so-called ‘information effect’. Calvin He explores this concept...