The industrial impact of monetary shocks during the inflation targeting era in Australia

Joaquin Vespignani

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Monetary shocks; Industrial response; Industrial composition and VAR model (search for similar items in EconPapers)
JEL-codes: C32 E50 E58 (search for similar items in EconPapers)
Date: 2012-06-01, Revised 2013-01-01
New Economics Papers: this item is included in nep-mon
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: The Industrial Impact of Monetary Shocks During the Inflation‐Targeting Era in Australia (2013)
Working Paper: The industrial impact of monetary shocks during the inflation targeting era in Australia (2013)
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