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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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manufactured prices, and global economic activity. The first two shocks, a world demand shock and a commodity-market specific shock … are fairly standard. The third shock, a globalisation shock that may result, for instance, from the increasing importance … of China, India and eastern Europe in the global economy is more novel. The globalisation shock is associated with a …
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The terms of trade are subject to both permanent and transitory shocks. Particularly for commodity-producing small open economies, it is sometimes argued that the inability of agents to determine which of these shocks are permanent and which are transitory leads to more macroeconomic volatility...
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The early 21st century saw Australia experience its largest and longest terms of trade boom. This paper places this recent boom in a long-run historical context by comparing the current episode with earlier cycles. While similarities exist across most episodes, current macroeconomic policy...
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