Australia's Medium‐Run Exchange Rate: A Macroeconomic Balance Approach

Nikola Dvornak, Marion Kohler and Gordon Menzies

The Economic Record, 2005, vol. 81, issue 253, 101-112

Abstract: The determinants of Australia's exchange rate based on the internal–external balance approach introduced by Williamson (1983) were analysed. Internal balance implies that the economy is operating at supply potential with no inflationary pressures. External balance is characterised as the sustainable net flow of resources (corresponding to a current account to gross domestic product ratio) between countries in internal balance. After estimating a disaggregated trade model for Australia, estimates of the medium‐term exchange rate associated with a given current account position were provided. These estimates, however, vary considerably through time because of variations in key parameters.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doi.org/10.1111/j.1475-4932.2005.00236.x

Related works:
Working Paper: Australia’s Medium-run Exchange Rate: A Macroeconomic Balance Approach (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecorec:v:81:y:2005:i:253:p:101-112

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0249

Access Statistics for this article

The Economic Record is currently edited by Paul Miller, Glenn Otto and Martin Richardson

More articles in The Economic Record from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().