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

Dungey, Mardi; Osborn, Denise; Raghavan, Mala


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...[Show more]

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
Source: The Economic Record
DOI: 10.1111/1475-4932.12137


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