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Commodity Price Shocks And The Australian Economy Since Federation

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  • SAMBIT BHATTACHARYYA
  • JEFFREY G. WILLIAMSON

Abstract

Australia has experienced frequent and large commodity export price shocks like Third World commodity exporters, but this price volatility has had much more modest impact on economic performance. Why? This paper explores Australian terms of trade volatility since 1901. It identifies two major price shock episodes before the recent mining-led boom and bust. It assesses their relative magnitude, their deindustrialization and distributional impact during the booms, and their labour market and policy responses throughout. Australia has indeed responded differently to volatile commodity prices than have other commodity exporters.

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Bibliographic Info

Article provided by Economic History Society of Australia and New Zealand in its journal Australian Economic History Review.

Volume (Year): 51 (2011)
Issue (Month): 2 (07)
Pages: 150-177

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Handle: RePEc:bla:ozechr:v:51:y:2011:i:2:p:150-177

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Cited by:
  1. Tim Atkin & Mark Caputo & Tim Robinson & Hao Wang, 2014. "Macroeconomic Consequences of Terms of Trade Episodes, Past and Present," CEH Discussion Papers 22, Centre for Economic History, Research School of Economics, Australian National University.
  2. Sambit Bhattacharyya & Jeffrey Williamson, 2013. "Distributional Impact of Commodity Price Shocks: Australia over a Century," CEH Discussion Papers 019, Centre for Economic History, Research School of Economics, Australian National University.
  3. Jonathan A. Batten, Cetin Ciner and Brian M. Lucey, 2008. "The Macroeconomic Determinants of Volatility in Precious Metals Markets," The Institute for International Integration Studies Discussion Paper Series iiisdp255, IIIS.
  4. Medina, Leandro, 2010. "A Commodity Curse? The Dynamic Effects of Commodity Prices on Fiscal Performance in Latin America," MPRA Paper 21690, University Library of Munich, Germany.
  5. Ian W. McLean, 2010. "Responding to Shocks: Australia's Institutions and Policies," School of Economics Working Papers 2010-30, University of Adelaide, School of Economics.
  6. Leandro Medina, 2010. "The Dynamic Effects of Commodity Prices on Fiscal Performance in Latin America," IMF Working Papers 10/192, International Monetary Fund.
  7. Ian Keay, 2010. "The Impact of Commodity Price Volatility on Resource Intensive Economies," Working Papers 1274, Queen's University, Department of Economics.

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