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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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Publication status: published as Sambit Bhattacharyya & Jeffrey G. Williamson, 2011. "Commodity Price Shocks And The Australian Economy Since Federation," Australian Economic History Review, Wiley Blackwell Asia Pty Ltd and the Economic History Society of Australia and New Zealand, vol. 51(2), pages 150-177, 07.
Handle: RePEc:nbr:nberwo:14694

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Citations

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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," CAMA Working Papers 2014-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  2. Batten, Jonathan A. & Ciner, Cetin & Lucey, Brian M., 2010. "The macroeconomic determinants of volatility in precious metals markets," Resources Policy, Elsevier, Elsevier, vol. 35(2), pages 65-71, June.
  3. Sambit Bhattacharyya & Jeffrey G. Williamson, 2013. "Distributional Impact of Commodity Price Shocks: Australia over a Century," OxCarre Working Papers, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford 117, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  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. Leandro Medina, 2010. "The Dynamic Effects of Commodity Priceson Fiscal Performance in Latin America," IMF Working Papers 10/192, International Monetary Fund.
  6. Ian Keay, 2010. "The Impact of Commodity Price Volatility on Resource Intensive Economies," Working Papers, Queen's University, Department of Economics 1274, Queen's University, Department of Economics.
  7. Ian W. McLean, 2010. "Responding to Shocks: Australia's Institutions and Policies," School of Economics Working Papers, University of Adelaide, School of Economics 2010-30, University of Adelaide, School of Economics.

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