Australia: Selected Issues

International Monetary Fund

No 2004/354, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper for Australia highlights the dynamics of the Australian real exchange rate and its impact on Australia’s trade. The main findings are that the Australian real exchange rate is largely driven by world commodity prices and that it adjusts relatively rapidly to large shocks, with an estimated half-life of 16 months. The real exchange rate is a significant determinant of Australian imports, with an elasticity of one, but does not appear to have a significant impact on Australian exports.

Keywords: ISCR; CR; exchange rate; trade; disability; commodity; trade liberalization; real exchange rate; world commodity price; disability scheme; product market reform; Real exchange rates; Trade liberalization; Labor market reforms; Total factor productivity; Inflation; Global; Australia and New Zealand (search for similar items in EconPapers)
Pages: 52
Date: 2004-11-08
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