Inquiry into the international financial market effects on government policy
Media Releases

Media release: 4 February 2000

RESERVE BANK TO FACE PARLIAMENTARY COMMITTEE

The first public hearings in the House of Representatives Economics Committee's inquiry into International Financial Markets will be held in Sydney on Wednesday, 9 February.

Committee Chairman, Mr David Hawker MP, said that: "The inquiry is examining the impact of globalisation of international financial markets on Australia's monetary and fiscal policies. It will consider also the role of hedge funds in the Asian financial crisis and particularly their attack on the Australian dollar in 1998."

"With the Reserve Bank and the Australian Stock Exchange and Sydney Futures Exchange in opposing camps the hedge fund debate will be lively", said Mr Hawker.

"There is no doubt, however, that with the increasing globalisation of markets, there is a rising trend toward trading of currencies for speculation rather than trade or investment."

Mr Hawker said that: "As the Australian dollar is one of the top five or six traded currencies in world financial markets, it is imperative that Australia develop risk management strategies to reduce the potential of market disruption."

"Since the Asian financial crisis, Australia has played a leading role in the international effort to develop an international financial regulatory structure to ensure the international system is better equipped to deal with similar crises in the future", Mr Hawker said.

"Stability of the international financial system is essential to Australia's economic welfare. The evidence given to the Committee at this hearing on Wednesday should prove to be an extremely useful contribution toward achievement of that goal."

The witnesses appearing at this hearing will be the Governor of the Reserve Bank of Australia, the Australian Stock Exchange, the Sydney Futures Exchange and Dr Carolyn Currie of the Sydney University of Technology.

Members of the public are welcome to attend the hearing, which will be held in Rooms 814 and 815 at Parliament House, Sydney from 9am to 5pm on 9 February.

Ends
4 February 2000
Email: EFPA.Reps@aph.gov.au

Further information:
David Hawker MP (Chairman) 03 5572 1100 Electorate
Tas Luttrell (Inquiry Secretary) 02 6277 2375

Program: Public Hearing

Rooms 814 and 815
Parliament House
SYDNEY NSW 2000

9.00 am - 10.45 am
Reserve Bank of Australia
Mr Ian Macfarlane, Governor
Dr Stephen Grenville, Deputy Governor
Mr Rick Battellino, Assistant Governor, (Financial Markets)

11.00 am - 12.30 pm
Australian Stock Exchange
Mr Michael Roche, National Manager (Strategic Planning & Review)
Mr Jason Anderson, Senior Economist

1.30 pm - 3.00 pm
Sydney Futures Exchange
Mr Malcolm Starr, Policy Director

3.15 pm - 4.15 pm
Dr Carolyn Currie, Lecturer, School of Finance & Economics, University of Technology, Sydney

Terms of Reference

The globalisation of international financial markets has raised important issues for the conduct of macroeconomic policy and the operation of financial markets. This inquiry will examine these matters with particular reference to:

1. The implications of the globalisation of international financial markets for the conduct of fiscal and monetary policies in Australia, including medium-term and other strategies to cope with potential volatility in markets.

2. Information requirements for the stable and efficient operation of international financial markets, including the provision of information by governments and disclosure by market participants, especially by large market participants including highly leveraged institutions.

3. The relevance to these issues of recent developments in the international framework for financial regulation.

Committee Membership 39th Parliament

Chairman: Mr David Hawker MP
Deputy Chairman: Mr Gregory Wilton MP
Members:
Mr Anthony Albanese MP
Ms Anna Burke MP
Ms Teresa Gambaro MP
Mrs Kay Hull MP
Mr Mark Latham MP
Mr Christopher Pyne MP
Hon Alex Somlyay MP
Dr Andrew Southcott MP

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