Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada
A commodity-price boom is under way. What does this boom mean for inflation in coutnries with substantial net commodity exports? The answer depends on movements in commodity prices, changes in foreign exchange rates and the determinants of domestic price inflation. We estimate equations to provid...
| Main Authors: | , , |
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| Format: | Journal Article |
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Blackwell Publishing Asia
2006
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| Online Access: | http://search.informit.com.au/fullText;dn=200610927;res=APAFT http://hdl.handle.net/20.500.11937/15876 |
| _version_ | 1848749013458747392 |
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| author | Bloch, Harry Dockery, Alfred Michael Sapsford, D. |
| author_facet | Bloch, Harry Dockery, Alfred Michael Sapsford, D. |
| author_sort | Bloch, Harry |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | A commodity-price boom is under way. What does this boom mean for inflation in coutnries with substantial net commodity exports? The answer depends on movements in commodity prices, changes in foreign exchange rates and the determinants of domestic price inflation. We estimate equations to provide indications of the strength of each of these forces for both Australia and Canada. The results show that world commodity prices move pro-cyclically with world industrial production and that rates of change in commodity prices are directly related to domestic inflation in both countries. However, there is an offsetting impact of exchange-rate changes, which is strong enough in the case of Australia, but not Canada, to substantially eliminate the inflationary impact of a commodity-price boom. |
| first_indexed | 2025-11-14T07:14:11Z |
| format | Journal Article |
| id | curtin-20.500.11937-15876 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:14:11Z |
| publishDate | 2006 |
| publisher | Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-158762017-09-13T15:57:40Z Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada Bloch, Harry Dockery, Alfred Michael Sapsford, D. A commodity-price boom is under way. What does this boom mean for inflation in coutnries with substantial net commodity exports? The answer depends on movements in commodity prices, changes in foreign exchange rates and the determinants of domestic price inflation. We estimate equations to provide indications of the strength of each of these forces for both Australia and Canada. The results show that world commodity prices move pro-cyclically with world industrial production and that rates of change in commodity prices are directly related to domestic inflation in both countries. However, there is an offsetting impact of exchange-rate changes, which is strong enough in the case of Australia, but not Canada, to substantially eliminate the inflationary impact of a commodity-price boom. 2006 Journal Article http://hdl.handle.net/20.500.11937/15876 10.1111/j.1475-4932.2006.00336.x http://search.informit.com.au/fullText;dn=200610927;res=APAFT Blackwell Publishing Asia restricted |
| spellingShingle | Bloch, Harry Dockery, Alfred Michael Sapsford, D. Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada |
| title | Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada |
| title_full | Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada |
| title_fullStr | Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada |
| title_full_unstemmed | Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada |
| title_short | Commodity prices and the dynamics of inflation in commodity-exporting nations: Evidence from Australia and Canada |
| title_sort | commodity prices and the dynamics of inflation in commodity-exporting nations: evidence from australia and canada |
| url | http://search.informit.com.au/fullText;dn=200610927;res=APAFT http://hdl.handle.net/20.500.11937/15876 |