The channels of monetary policy triggered by central bank actions and statements in the Australian equity market

Owing to the discrete disclosure practices of the Reserve Bank of Australia, this paper provides new evidence on the channels of monetary policy triggered by central bank actions (monetary policy announcements) and statements (explanatory minutes releases), in the Australian equity market. Both monetary policy announcements and explanatory minutes releases are shown to have a significant and comparable impact on the returns and volatility of the Australian equity market. Further, distinct from US and European studies that find strong evidence of the interest rate, bank loan and balance sheet channels and no evidence of the exchange rate channel following central bank actions, this paper finds that monetary policy impacts the Australian equity market via the exchange rate, interest rate and bank loan channels of monetary policy, with only weak evidence of the balance sheet channel of monetary policy. These channels are found to be operating irrespective of the trigger (monetary policy announcements or explanatory minutes releases), though results are somewhat weaker when examining the explanatory minutes releases. These results have important implications for central bank officials and financial market participants alike: by confirming a comparable avenue to affect monetary policy; and providing an explication of its impact on the Australian equity market.

Action regulation across the adult lifespan (ARAL): A metatheory of work and aging

The goals of this article are to integrate action regulation theory (ART) with the lifespan developmental perspective and to outline tenets of a new metatheory of work and aging. The action regulation across the adult lifespan (ARAL) theory explains how workers influence, and are influenced by, their environment across different time spans. First, the basic concepts of ART are described, including the sequential and hierarchical structure of actions, complete tasks and actions, foci of action regulation, and the action-regulating mental model. Second, principles of the lifespan developmental perspective are delineated, including development as a lifelong and multidirectional process, the joint occurrence of gains and losses, intraindividual plasticity, historical embeddedness, and contextualism. Third, propositions of ARAL theory are derived by analyzing workers’ action regulation from a lifespan developmental perspective (i.e., effects of aging on action regulation), and by analyzing aging and development in the work context from an ART perspective (i.e., effects of action regulation on age-related changes in cognition and personality). Fourth, we develop further propositions to integrate ART with lifespan theories of motivation and socioemotional experience. Finally, we discuss implications for future research and practice based on ARAL theory.