IDEAS home Printed from https://ideas.repec.org/a/bca/bcarev/v2008y2008iautumn08p31-43.html
   My bibliography  Save this article

Adjusting to the Commodity-Price Boom: The Experiences of Four Industrialized Countries

Author

Listed:

Abstract

Between 2002 and 2008, global commodity prices rose to unprecedented levels. This article examines the process of adjustment to the commodity boom in four industrialized, commodity-exporting countries (Australia, Canada, New Zealand, and Norway). The article focuses on both the direct adjustment within the commodity-producing sectors (via increased employment and capital spending) and the indirect adjustment in the macro economy. The analysis finds that the indirect adjustment process, which was triggered by the increase in incomes that the commodity-price boom generated, has been the most important part of the adjustment in all four economies. Through this channel, aggregate demand rose, exchange rates appreciated, and adjustment was facilitated in other sectors, such as manufacturing and construction.

Suggested Citation

  • Michael Francis, 2008. "Adjusting to the Commodity-Price Boom: The Experiences of Four Industrialized Countries," Bank of Canada Review, Bank of Canada, vol. 2008(Autumn), pages 31-43.
  • Handle: RePEc:bca:bcarev:v:2008:y:2008:i:autumn08:p:31-43
    as

    Download full text from publisher

    File URL: http://www.bankofcanada.ca/wp-content/uploads/2010/06/francis.pdf
    File Function: full text
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ellis Connolly & Jarkko Jääskelä & Michelle van der Merwe, 2013. "The Performance of Resource-exporting Economies," RBA Bulletin, Reserve Bank of Australia, pages 19-30, September.
    2. Aqib Aslam & Samya Beidas-Strom & Rudolfs Bems & Oya Celasun & Sinem Kılıç Çelik & Zsoka Koczan, 2016. "Trading on Their Terms? Commodity Exporters in the Aftermath of the Commodity Boom," IMF Working Papers 16/27, International Monetary Fund.
    3. International Monetary Fund, 2014. "Australia; Staff Report for 2013 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Australia," IMF Staff Country Reports 14/51, International Monetary Fund.
    4. Luis N. Lanteri, 2015. "Efectos de la enfermedad holandesa ('Dutch disease'). Alguna evidencia para Argentina," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, vol. 18(2), pages 187-209, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bca:bcarev:v:2008:y:2008:i:autumn08:p:31-43. 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: (). General contact details of provider: http://www.bank-banque-canada.ca/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.