Commodity price shocks, labour market dynamics and monetary policy in small open economies

Naraidoo, Ruthira; Paez-Farrell, Juan

dc.contributor.author	Naraidoo, Ruthira
dc.contributor.author	Paez-Farrell, Juan
dc.date.accessioned	2024-03-05T06:20:33Z
dc.date.available	2024-03-05T06:20:33Z
dc.date.issued	2023-06
dc.description.abstract	We analyse the transmission mechanism of commodity price shocks in inflation targeting emerging economies. Using a panel vector autoregression, we find that for a commodity exporter, the shock causes a real exchange rate appreciation, increases in output, inflation, the nominal interest rate and the trade balance, and a fall in the unemployment rate. The mechanism underlying the dynamics driving the VAR can be understood using a dynamic stochastic general equilibrium model. Search and matching frictions in the labour mark	en_US
dc.description.department	Economics	en_US
dc.description.librarian	hj2024	en_US
dc.description.sdg	SDG-08:Decent work and economic growth	en_US
dc.description.uri	http://www.elsevier.com/locate/jedc	en_US
dc.identifier.citation	Naraidoo, R. & Paez-Farrell, J. 2023, 'Commodity price shocks, labour market dynamics and monetary policy in small open economies', Journal of Economic Dynamics and Control, vol. 151, art. 104654, pp. 1-26, doi : 10.1016/j.jedc.2023.104654.	en_US
dc.identifier.issn	0165-1889 (print)
dc.identifier.issn	1879-1743 (online)
dc.identifier.other	10.1016/j.jedc.2023.104654
dc.identifier.uri	http://hdl.handle.net/2263/95068
dc.language.iso	en	en_US
dc.publisher	Elsevier	en_US
dc.rights	© 2023 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license.	en_US
dc.subject	Commodity prices	en_US
dc.subject	Emerging markets	en_US
dc.subject	Inflation	en_US
dc.subject	Monetary policy	en_US
dc.subject	Search and matching	en_US
dc.subject	Unemployment	en_US
dc.subject	Dutch disease	en_US
dc.subject	DSGE modelling	en_US
dc.subject	Dynamic stochastic general equilibrium (DSGE)	en_US
dc.subject	Bayesian impulse response matching	en_US
dc.subject	SDG-08: Decent work and economic growth	en_US
dc.title	Commodity price shocks, labour market dynamics and monetary policy in small open economies	en_US
dc.type	Article	en_US