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Key Features of Australian Business Cycles
Author(s) -
Cashin Paul,
Ouliaris Sam
Publication year - 2004
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.2004.00215.x
Subject(s) - business cycle , dominance (genetics) , economics , duration (music) , aggregate supply , econometrics , macroeconomics , aggregate demand , monetary policy , biochemistry , chemistry , gene , art , literature
This paper identifies and describes the key features of Australian business cycles during the period 1959–2002. In particular, we identify the chronologies in Australia's classical cycle (expansions and contractions in the level of output) and growth cycle (periods of above‐trend and below‐trend rates of economic growth). We find that while there are large asymmetries in the duration and amplitude of phases in Australia's classical cycle, on both measures the Australian growth cycle is much more symmetric. Further, our results indicate that over the sample period Australian (filtered) output and prices have moved in a counter‐cyclical fashion, suggesting a dominance of shocks to aggregate supply affecting the Australian economy.