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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

Citation

Vespignani, J, On the differential impact of monetary policy across states/territories and its determinants in Australia: Evidence and new methodology from a small open economy, Journal of International Financial Markets, Institutions and Money, 34 pp. 1-13. ISSN 1042-4431 (2015) [Refereed Article]

Copyright Statement

Copyright 2014 Elsevier B.V.

DOI: doi:10.1016/j.intfin.2014.10.001

Abstract

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.

Item Details

Item Type:Refereed Article
Keywords:Monetary Policy; VEC; Australian states/territories
Research Division:Economics
Research Group:Applied Economics
Research Field:Macroeconomics (incl. Monetary and Fiscal Theory)
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macroeconomics not elsewhere classified
Author:Vespignani, J (Dr Joaquin Vespignani)
ID Code:95834
Year Published:2015
Deposited By:Tasmanian School of Business and Economics
Deposited On:2014-10-09
Last Modified:2017-11-22
Downloads:0

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