Understanding the appreciation of the Australian dollar and its policy implications
The Australian dollar has appreciated strongly over the past decade, leading to increased concerns over the impacts of the high exchange rate on trade-exposed sectors of the economy. This paper examines the underlying drivers of this rise, the exchange rate’s role as a macroeconomic shock absorber and the implications of various policy options that might be directed at reducing the exchange rate.
Volume (Year): (2012)
Issue (Month): 2 (August)
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