Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region

Dramatic changes in the relative prices of goods in international trade have accompanied, and indeed preceded, the global crisis. These changes are reflected in the terms of trade of individual countries and in the relative prices of goods within those countries. Asia-Pacific countries are particula...

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Main Authors: Bloch, Harry, Sapsford, D.
Format: Working Paper
Published: Centre for Research in Applied Economics, Curtin Business School 2009
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/15924
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author Bloch, Harry
Sapsford, D.
author_facet Bloch, Harry
Sapsford, D.
author_sort Bloch, Harry
building Curtin Institutional Repository
collection Online Access
description Dramatic changes in the relative prices of goods in international trade have accompanied, and indeed preceded, the global crisis. These changes are reflected in the terms of trade of individual countries and in the relative prices of goods within those countries. Asia-Pacific countries are particularly affected by the changes in relative prices as they have been at the core of the increasing globalisation of production and distribution systems. An analysis of the causes and effects of the relative price changes is developed based on applying the analysis of business cycles developed by Joseph Schumpeter. Schumpeter's analysis emphasises innovation and structural change, particularly creative destruction, which impart uneven development on the economy and can foster financial crises. By applying Schumpeter's analysis the current crisis is put in the context of long-wave development of the capitalist system, which leads to predictions about the likely path of price and output changes over the medium term of the next decade or two.
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spelling curtin-20.500.11937-159242017-01-30T11:52:44Z Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region Bloch, Harry Sapsford, D. Schumpeter Global economic crisis Primary commodity prices Terms of trade Business cycles Dramatic changes in the relative prices of goods in international trade have accompanied, and indeed preceded, the global crisis. These changes are reflected in the terms of trade of individual countries and in the relative prices of goods within those countries. Asia-Pacific countries are particularly affected by the changes in relative prices as they have been at the core of the increasing globalisation of production and distribution systems. An analysis of the causes and effects of the relative price changes is developed based on applying the analysis of business cycles developed by Joseph Schumpeter. Schumpeter's analysis emphasises innovation and structural change, particularly creative destruction, which impart uneven development on the economy and can foster financial crises. By applying Schumpeter's analysis the current crisis is put in the context of long-wave development of the capitalist system, which leads to predictions about the likely path of price and output changes over the medium term of the next decade or two. 2009 Working Paper http://hdl.handle.net/20.500.11937/15924 Centre for Research in Applied Economics, Curtin Business School fulltext
spellingShingle Schumpeter
Global economic crisis
Primary commodity prices
Terms of trade
Business cycles
Bloch, Harry
Sapsford, D.
Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region
title Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region
title_full Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region
title_fullStr Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region
title_full_unstemmed Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region
title_short Terms of trade movements and the global economic crisis: Implications for the Asia-Pacific region
title_sort terms of trade movements and the global economic crisis: implications for the asia-pacific region
topic Schumpeter
Global economic crisis
Primary commodity prices
Terms of trade
Business cycles
url http://hdl.handle.net/20.500.11937/15924