PAYNE, JONATHAN; UREN, LAWRENCE - In: Journal of Money, Credit and Banking 46 (2014) 2-3, pp. 347-370
We use a standard New Keynesian model of a small open economy, extended to include a government sector, to investigate the Great Depression in Australia. A calibrated model with a fixed exchange rate regime, similar to the gold standard, does well in replicating the dynamics of output during the...