The industrial impact of monetary shocks during the inflation targeting era in Australia
Abstract
In this article we analyse the industrial impact of monetary shocks since inflation targeting has been introduced in Australia (1990). These impacts are quantified by constructing a structural vector autoregressive (SVAR) model for a small open economy. Our results show that construction and manufacturing industries exhibit a significant reduction in gross value added (GVA) after an unanticipated rise in the official cash rate. However, the finance and insurance industry, and the mining industry,seem to be unaffected by these shocks.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43686.Length:
Date of creation: 01 Jun 2012
Date of revision: 01 Jan 2013
Handle: RePEc:pra:mprapa:43686
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Related research
Keywords: Monetary shocks; Industrial response; Industrial composition and VAR model;Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-19 (All new papers)
- NEP-MON-2013-01-19 (Monetary Economics)
References
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