Karfakis, Costas; Phipps, Anthony - In: Review of International Economics 7 (1999) 2, pp. 265-79
This paper examines the link between the Australian dollar's exchange rate and Australia's terms of trade. The US$/A$ rate is found to be cointegrated with the terms of trade, and the relationship between the two variables appears to be robust. An estimated error-correction model for changes in...