TY - JOUR
T1 - International transmissions to Australia
T2 - The roles of the USA and Euro area
AU - Dungey, Mardi
AU - Osborn, Denise
AU - Raghavan, Mala
N1 - Publisher Copyright:
© 2014 Economic Society of Australia.
PY - 2014/12/1
Y1 - 2014/12/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84916931331&partnerID=8YFLogxK
U2 - 10.1111/1475-4932.12137
DO - 10.1111/1475-4932.12137
M3 - Article
SN - 0013-0249
VL - 90
SP - 421
EP - 446
JO - Economic Record
JF - Economic Record
IS - 291
ER -