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Trans-Tasman Transmission of Monetary Shocks: Evidence from a VAR Approach.
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- Author(s): Peren Arin, K.; Jolly, Sam P.
- Source:
Atlantic Economic Journal; Sep2005, Vol. 33 Issue 3, p267-283, 17p- Subject Terms:
- Source:
- Additional Information
- Abstract: This paper investigates the cross-country transmission mechanisms of monetary shocks between Australia and New Zealand within a VAR framework for the period 1985:1-2003:4. The empirical results indicate that a monetary shock in either Australia or New Zealand has real effects in the short-run in both countries; however, an Australian shock generates more significant responses of most variables. Australian output is found to be significantly more sensitive than New Zealand output to monetary innovations in either country. The results also suggest that monetary innovations in a small open economy can also influence its larger trading partner. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Atlantic Economic Journal is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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