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International shocks and the role of domestic policy in Australia

Dungey, Mardi


In the presence of large international disturbances small open economies are faced with difficult policy choices. International conditions impact on domestic outcomes. Using a structural VAR model of the Australian economy I explore the ways in which domestic monetary policy contributes to the output outcomes experienced in the economy. The focus is on the impact of international shocks. Monetary policy is modelled using a cash rate response to GNE, inflation and real exchange rate shocks. ...[Show more]

CollectionsANU Research Publications
Type: Working/Technical Paper
Source: Australian Journal of Labour Economics


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