The Current Account, Monetary Policy, Market Sentiment And The Real Exchange Rate: Some Implications For The Farm Sector
The real effective value of the Australian dollar declined sharply between early 1985 and September 1986. 'Market fundamentals' associated with the deterioration in Australia's terms of trade and current account, and rising foreign debt levels are the commonly cited explanation for the decline. However, several other shorter term influences may have also contributed. Theoretical and empirical analysis indicates that market fundamentals might explain, at most, 20 percentage points of the 37 per cent decline in the rate over this period. Thus, a significant real appreciation would be expected over the medium term prior to, and quite independently of, any recovery in Australia's terms of trade in general or in world farm commodity prices in particular.
Volume (Year): 31 (1987)
Issue (Month): 03 (December)
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Muellbauer, John & Portes, Richard, 1978. "Macroeconomic Models with Quantity Rationing," Economic Journal, Royal Economic Society, vol. 88(352), pages 788-821, December.
- Bhandari, Jagdeep S, 1981. "Exchange Rate Overshooting Revisited," The Manchester School of Economic & Social Studies, University of Manchester, vol. 49(2), pages 165-72, June.
- Barro, Robert J & Grossman, Herschel I, 1971. "A General Disequilibrium Model of Income and Employment," American Economic Review, American Economic Association, vol. 61(1), pages 82-93, March.
- Trevor, Robert G & Donald, Stephen G, 1986.
"Exchange Rate Regimes and the Volatility of Financial Prices: The Australian Case,"
The Economic Record,
The Economic Society of Australia, vol. 0(0), pages 58-66, Supplemen.
- Robert G. Trevor & Stephen G. Donald, 1986. "Exchange Rate Regimes and the Volatility of Financial Prices: The Australian Case," RBA Research Discussion Papers rdp8608, Reserve Bank of Australia.
- Corden, W M, 1978. "Keynes and the Others: Wage and Price Rigidities in Macro-economic Models," Oxford Economic Papers, Oxford University Press, vol. 30(2), pages 159-80, July.
- L.P. O'Mara & N.A. Wallace & Helen Meshios, 1987. "The Current Account, Monetary Policy, Market Sentiment And The Real Exchange Rate: Some Implications For The Farm Sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 31(3), pages 219-241, December.
- Chalfant, James A. & Love, H. Alan & Rausser, Gordon C. & Stamoulis, Kostas G., 1986.
"The effects of monetary policy on U.S. agriculture,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt1rn3z1wd, Department of Agricultural & Resource Economics, UC Berkeley.
- Chalfant, James A. & Love, H. Alan & Rausser, Gordon C. & Stamoulis, Kostas G, 1986. "The effects of monetary policy on U.S. agriculture," CUDARE Working Paper Series 409, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- J. Peter Neary, 1980. "Nontraded Goods and the Balance of Trade in a Neo-Keynesian Temporary Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 403-429.
- Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1161-76, December.
- Gregory, R.G., 1976.
"Some Implications Of The Growth Of The Mineral Sector,"
Australian Journal of Agricultural Economics,
Australian Agricultural and Resource Economics Society, vol. 20(02), August.
- R.G. Gregory, 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, 08.
- Turnovsky, Stephen J, 1981. "Monetary Policy and Foreign Price Disturbances under Flexible Exchange Rates: A Stochastic Approach," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 13(2), pages 156-76, May.
- Gray, Malcolm R & Turnovsky, Stephen J, 1979. "The Stability of Exchange Rate Dynamics under Perfect Myopic Foresight," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(3), pages 643-60, October.
When requesting a correction, please mention this item's handle: RePEc:ags:ajaeau:22272. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.