Economic Growth and Real Exchange Rates. Exchange rate movements are important elements of Australia's economic environment. Protectionist interests in the US and Europe, constrained by WTO trade rules, accuse East Asian economies of deliberate undervaluation. While exchange rate movements are not readily predictable in the short run, long run changes in underlying real exchange rates are amenable to economic analysis using structural models. The clearer understanding of these forces, toward ....Economic Growth and Real Exchange Rates. Exchange rate movements are important elements of Australia's economic environment. Protectionist interests in the US and Europe, constrained by WTO trade rules, accuse East Asian economies of deliberate undervaluation. While exchange rate movements are not readily predictable in the short run, long run changes in underlying real exchange rates are amenable to economic analysis using structural models. The clearer understanding of these forces, toward which this project is directed, will better guide investment in the region, including in Australia, and more importantly, it will better inform future policy debates surrounding currency movements.Read moreRead less
The World Economy, India and Exchange Banks: 1850 - 1914. This project aims to examine how exchange banks linked India to an expanding world economy between 1850 and 1914, and to show, in turn, how this process was defined by an imperial relationship that tied India to Britain. Its significance lies in the fact that while the exchange banks were central to the circulation of capital during this period, their crucial role in shaping the development of capitalism in India has been largely ignored. ....The World Economy, India and Exchange Banks: 1850 - 1914. This project aims to examine how exchange banks linked India to an expanding world economy between 1850 and 1914, and to show, in turn, how this process was defined by an imperial relationship that tied India to Britain. Its significance lies in the fact that while the exchange banks were central to the circulation of capital during this period, their crucial role in shaping the development of capitalism in India has been largely ignored. Expected outcomes include conference presentations, at least three articles, a monograph, and a digitised map that links time and space in outlining the spread of such banks.Read moreRead less
Economic Aspects of Wool in Western Australia. Over the past 15 years, the wool industry in WA has gone from bust to boom.. This project develops a general equilibrium model to analyse the impact of the world economic conditions on the wool industry and the WA economy in general. We will also investigate the reasons for the systematically lower wool prices in Fremantle and the interactions between Australian wool prices and exchange rates. The results will enhance understanding of the industry, ....Economic Aspects of Wool in Western Australia. Over the past 15 years, the wool industry in WA has gone from bust to boom.. This project develops a general equilibrium model to analyse the impact of the world economic conditions on the wool industry and the WA economy in general. We will also investigate the reasons for the systematically lower wool prices in Fremantle and the interactions between Australian wool prices and exchange rates. The results will enhance understanding of the industry, and offer insights as to how it might be made less volatile in the future by providing valuable information to woolgrowers and policy makers.Read moreRead less
Exchange Rates and Commodity Prices in a Volatile Business Environment. In recent years, many Australian companies have been hurt by the large movements in the value of the Australian dollar, by their inability to forecast these movements, and by deficiencies of their hedging strategies to deal with foreign-exchange risk. This project will develop an alternative way of forecasting the $A in real time using a new methodology, based on purchasing power parity, that shows much promise. Additional ....Exchange Rates and Commodity Prices in a Volatile Business Environment. In recent years, many Australian companies have been hurt by the large movements in the value of the Australian dollar, by their inability to forecast these movements, and by deficiencies of their hedging strategies to deal with foreign-exchange risk. This project will develop an alternative way of forecasting the $A in real time using a new methodology, based on purchasing power parity, that shows much promise. Additionally, an innovative way to analyse gold prices will be further developed, which when combined with the $A forecasts, offers a potentially valuable method of hedging foreign exchange and commodity price risk faced by Australian gold producers.Read moreRead less