An estimated New Keynesian Policy Model for Australia
Journal
The Economic Record
ISSN
0013-0249
ISSN-Digital
1475-4932
Type
journal article
Date Issued
2008-03
Author(s)
Abstract
An open economy New Keynesian policy model for Australia is estimated in this study. We investigate how important external shocks are as a source of macroeconomic fluctuations when compared to domestic ones. The results of our analysis suggest that the Australian business cycle and domestic inflation are most affected by domestic demand and supply shocks, respectively. However, domestic output also appears to be strongly affected by foreign demand shocks and domestic inflation by exchange rate shocks. Domestic variables do not seem to be significantly affected by foreign supply and monetary policy shocks.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Blackwell
Publisher place
Richmond, Vic.
Volume
84
Number
264
Start page
1
End page
16
Pages
16
Subject(s)
Division(s)
Eprints ID
184803