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The Industrial Impact of Monetary Shocks During the Inflation‐Targeting Era in A ustralia
Author(s) -
Vespignani Joaquin L.
Publication year - 2013
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/j.1467-8446.2013.00358.x
Subject(s) - economics , inflation (cosmology) , monetary economics , monetary policy , value (mathematics) , autoregressive model , cash , macroeconomics , econometrics , computer science , physics , machine learning , theoretical physics
In this article, we analyse the industrial impacts of monetary shocks since the introduction of inflation targeting in A ustralia in 1990. These impacts are quantified by constructing a structural vector autoregressive model for a small open economy. Our results show that construction and manufacturing industries exhibit a significant reduction in gross value added after an unanticipated rise in the official cash rate. However, the finance and insurance industry, and the mining industry, seem to be unaffected by these shocks.