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International Transmissions to Australia: The Roles of the USA and Euro Area


Dungey, MH and Osborn, DR and Raghavan, MV, International Transmissions to Australia: The Roles of the USA and Euro Area, Economic Record, 90, (291) pp. 421-446. ISSN 1475-4932 (2014) [Refereed Article]

Copyright Statement

Copyright 2014 Economic Society of Australia

DOI: doi:10.1111/1475-4932.12137


This 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.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Applied economics
Research Field:International economics
Objective Division:Economic Framework
Objective Group:International trade policy
Objective Field:International trade policy not elsewhere classified
UTAS Author:Dungey, MH (Professor Mardi Dungey)
UTAS Author:Osborn, DR (Professor Denise Osborn)
UTAS Author:Raghavan, MV (Dr Mala Raghavan)
ID Code:94979
Year Published:2014
Web of Science® Times Cited:6
Deposited By:TSBE
Deposited On:2014-09-22
Last Modified:2018-03-20

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