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Macroeconomic consequences of terms of trade episodes, past and present

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Authors

Atkin, Tim
Caputo, Mark
Robinson, Tim
Wang, Hao

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Crawford School of Public Policy, The Australian National University

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Open Access

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The early 21st century saw Australia experience its largest and longest terms of trade boom. This paper places this recent boom in a long-run historical context by comparing the current episode with earlier cycles. While similarities exist across most episodes, current macroeconomic policy frameworks and settings are quite different to those of the past. This mitigated the broader macroeconomic consequences of the upswing and as the terms of trade decline may do likewise.

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Centre for Applied Macroeconomic Analysis Working Papers

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Publication

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Open Access

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