Where Is the Australian J-Curve?
This study of the distributed lag response of Australia's trade balance to the terms of trade fin ds no evidence of a J-curve response beyond 1974 when the exchange rate is flexible. There is some inconclusive evidence of a protracted J curve in the fixed exchange rate era. The structural inadequacies of Australian import replacement and export industries explain these results, but there is little evidence to support the argument that Australian wages policies have priced the nation's tradables out of world or domestic markets. Copyright 1988 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research
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Volume (Year): 40 (1988)
Issue (Month): 1 (January)
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