Commodity Price Shocks and the Australian Economy since Federation
Even though Australia has experienced frequent and large commodity export price shocks like the Third World, it seems to have dealt with the volatility better. Why? This paper explores Australian terms of trade volatility since 1901. It identifies two major price shock episodes before the recent mining-led boom and bust. It assesses their relative magnitude, their de-industrialization and distributional impact, and policy responses. In what way has Australia been different from other commodity exporters experiencing volatile prices?
We gratefully acknowledge comments by and discussions with Chris Blattman, Bob Gregory, Jason Hwang, Tim Hatton, David Jacks, Andrew Leigh, Ian McLean, Kevin O'Rourke and Peter Timmer. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Sambit Bhattacharyya & Jeffrey G. Williamson, 2011. "Commodity Price Shocks And The Australian Economy Since Federation," Australian Economic History Review, Wiley Blackwell Asia Pty Ltd and the Economic History Society of Australia and New Zealand, vol. 51(2), pages 150-177, 07. citation courtesy of