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International Transmissions to Australia: The Roles of the USA and Euro Area
journal contribution
posted on 2023-05-18, 03:34 authored by Dungey, MH, Osborn, DR, Mala RaghavanMala RaghavanThis paper examines the influences of the world’s two largest developed economies, namely the USA and the Euro area, on Australia as an exemplar of a small open economy. To do so, we specify and estimate a structural VAR with bilateral linkages between the two large economies, and allow shocks originating in either to affect the Australian economy. More specifically, we show the role of foreign output shocks, the differential effects of USA- or Euro-area-sourced inflation and interest rate shocks on the Australian economy, and the relative unimportance of these foreign shocks to variations in the value of the Australian currency.
History
Publication title
Economic RecordVolume
90Issue
291Pagination
421-446ISSN
0013-0249Department/School
TSBEPublisher
Wiley-Blackwell Publishing AsiaPlace of publication
AustraliaRights statement
Copyright 2014 Economic Society of AustraliaRepository Status
- Restricted