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Commodity Price Shocks and the Australian Economy since Federation

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  • Sambit Bhattacharyya
  • Jeffrey G. Williamson

Abstract

Even though Australia has experienced frequent and large commodity export price shocks like the Third World, it seems to have dealt with the volatility better. 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 de-industrialization and distributional impact, and policy responses. In what way has Australia been different from other commodity exporters experiencing volatile prices?

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14694.

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Date of creation: Jan 2009
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Handle: RePEc:nbr:nberwo:14694

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  1. Cashin, P. & McDermott, C. J., 1997. "'Riding on the Sheep's Back': Examining Australia's Dependence on Wool Exports," Department of Economics - Working Papers Series 585, The University of Melbourne.
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Cited by:
  1. Batten, Jonathan A. & Ciner, Cetin & Lucey, Brian M., 2010. "The macroeconomic determinants of volatility in precious metals markets," Resources Policy, Elsevier, vol. 35(2), pages 65-71, June.
  2. 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.
  3. 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.
  4. Sambit Bhattacharyya & Jeffrey G. Williamson, 2013. "Distributional Impact of Commodity Price Shocks: Australia over a Century," CSAE Working Paper Series 2013-11, Centre for the Study of African Economies, University of Oxford.
  5. Ian Keay, 2010. "The Impact of Commodity Price Volatility on Resource Intensive Economies," Working Papers 1274, Queen's University, Department of Economics.
  6. 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.
  7. 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.
  8. Leandro Medina, 2010. "The Dynamic Effects of Commodity Prices on Fiscal Performance in Latin America," IMF Working Papers 10/192, International Monetary Fund.

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