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The 2000s was a particularly eventful decade for both the international and Australian economies. There were: two recessions in many countries; the largest international financial crisis since the Great Depression; the ongoing rapid development of Asia; asset booms and busts; and, Australia...
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that in responding to the macroeconomic consequences of a credit shock, monetary policy appears to stabilise the economy … effectively. As a result of monetary policy’s response, output and the exchange rate are barely affected by a credit shock. The … credit shock results in higher inflation for about two years, but it would be higher still over this period in the absence of …
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propensity to rebound from a shock to output is weak, or if output is relatively unresponsive to real interest rate settings. …
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The decline in output volatility in a number of countries over the past few decades has been well-documented, though less agreement has been reached about the causes of this decline. In this paper, we use a panel of data from 20 OECD countries to see if there is a role for various indicators of...
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Almost a decade ago David Gruen and Geoff Shuetrim constructed a small macroeconomic model of the Australian economy. A comprehensive description of this model was subsequently provided by Beechey <em>et al</em> (2000). Since that time, however, the model has continued to evolve. This paper provides an...
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