JÄÄSKELÄ, JARKKO P.; NIMARK, KRISTOFFER - In: The Economic Record 87 (2011) 276, pp. 11-36
We estimate a new Keynesian open economy dynamic stochastic general equilibrium model of Australia with a large number of shocks, frictions and rigidities, matching a large number of observable time series. We find that both foreign and domestic shocks are important drivers of the Australian...