Research Discussion Paper – RDP 9607 Towards an Understanding of Australia's Co-Movement with Foreign Business Cycles

Contents

• Introduction
• The Australian and Foreign Business Cycles
• The Foreign Business Cycle and Australian Exports
• The Impact of Foreign Share Markets on Australian Activity
• The Propagation of Business Cycles
• Conclusion
• Appendix A: Empirical Estimates of Australia's Co-Movement With Foreign Business Cycles
• Appendix B: Estimates of the ‘Gruen and Shuetrim Model Using Detrended Variables
• Appendix C: Channels of Transmission of Business Cycles
• Appendix D: Data Sources and Description
• Appendix E: Integration Tests of the Data
• References

We would like to especially thank Lynne Cockerell, Gordon de Brouwer, Jacqui Dwyer, David Gruen, Jo Paisley, and Alison Tarditi for their helpful comments and suggestions. Views expressed in this paper are those of the authors and not necessarily those of the Reserve Bank of Australia.