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On the differential impact of monetary policy across states/territories and its determinants in Australia: Evidence and new methodology from a small open economy
Monetary shocks largely affect economic activity in Western Australia. In smaller proportion, those shocks generate contractions in New South Wales, Victoria and South Australia, while economic activity in Queensland is significantly less affected. Finally, we develop a new approach to uncover the determinants of the differential state/territory responses to monetary shocks. Our estimation validates the theoretical assumptions that differences in industrial composition, exposure to international trade and household debt across states/territories are important determinants of these differences.
History
Publication title
Journal of International Financial Markets, Institutions and MoneyVolume
34Pagination
1-13ISSN
1042-4431Department/School
College Office - College of Business and EconomicsPublisher
Elsevier BVPlace of publication
NetherlandsRights statement
Copyright 2014 Elsevier B.V.Repository Status
- Restricted