Macroeconomic Consequences of Terms of Trade Episodes, Past and Present. (22nd October 2015)

• Record Type: Journal Article
• Authors: Robinson, Tim; Atkin, Tim; Caputo, Mark; Wang, Hao
• Is Part Of: Australian economic history review. Volume 57:Number 3(2017:Nov.)
• Page Start: 291
• Page End: 315
• Publication Date: 2015-10-22
• Subjects: E30 -- E60 -- N17; commodity price -- macroeconomic policy -- terms of trade; Economic history -- Periodicals; Australia -- Economic conditions -- Periodicals; New Zealand -- Economic conditions -- Periodicals; 330
• DOI: 10.1111/aehr.12090
• Languages: English
• ISSNs: 0004-8992

Abstract

Abstract : The early‐twenty first century saw Australia experience its largest and longest terms of trade boom. This paper places the most recent terms of trade boom in its historical context. While similarities exist with previous episodes, the macroeconomic policy frameworks and settings prevailing were quite different to those of the past. These different frameworks and settings mitigated the broader macroeconomic consequences of the terms of trade upswing and may do likewise as it declines.