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

dc.contributor.authorNaraidoo, Ruthira
dc.contributor.authorPaez-Farrell, Juan
dc.contributor.emailruthira.naraidoo@up.ac.zaen_US
dc.date.accessioned2024-03-05T06:20:33Z
dc.date.available2024-03-05T06:20:33Z
dc.date.issued2023-06
dc.description.abstractWe 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 marken_US
dc.description.departmentEconomicsen_US
dc.description.librarianhj2024en_US
dc.description.sdgSDG-08:Decent work and economic growthen_US
dc.description.urihttp://www.elsevier.com/locate/jedcen_US
dc.identifier.citationNaraidoo, 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.issn0165-1889 (print)
dc.identifier.issn1879-1743 (online)
dc.identifier.other10.1016/j.jedc.2023.104654
dc.identifier.urihttp://hdl.handle.net/2263/95068
dc.language.isoenen_US
dc.publisherElsevieren_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.subjectCommodity pricesen_US
dc.subjectEmerging marketsen_US
dc.subjectInflationen_US
dc.subjectMonetary policyen_US
dc.subjectSearch and matchingen_US
dc.subjectUnemploymenten_US
dc.subjectDutch diseaseen_US
dc.subjectDSGE modellingen_US
dc.subjectDynamic stochastic general equilibrium (DSGE)en_US
dc.subjectBayesian impulse response matchingen_US
dc.subjectSDG-08: Decent work and economic growthen_US
dc.titleCommodity price shocks, labour market dynamics and monetary policy in small open economiesen_US
dc.typeArticleen_US

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