dollar. This has included the increased use of financial derivative contracts to hedge their foreign exchange exposures. This … paper examines the available evidence on the nature and extent of this hedging behaviour. Related to this, Australia’s net …

In this paper, we investigate the spillover of the financial-market volatility arising from the East-asian crisis on … increased volatility should be kept in perspective: US-market and own-market developments generally had much greater influence … on prices and volatility than the shocks originating in the Asian crisis economies. Importantly, the financial …

The decline in output volatility in a number of countries over the past few decades has been well-documented, though … volatility. We suggest that reforms in product and labour markets can reduce volatility of aggregate output by encouraging … output volatility. Our estimates are reasonably robust to a number of alternative specifications, including those that …

We examine the relationship between the short-term volatility of the <em>effective</em> Real Exchange Rate (RER) and … in effective RER volatility when moving to more flexible exchange-rate regimes. Surprisingly, there are even some … countries for which volatility is lower under more flexible exchange-rate regimes. In part our findings reflect the fact that …

There has been a large decline in the volatility of Australian output over the past 40 years. This paper looks at the … from changes in the inventories cycle there have also been significant declines in underlying output volatility. This paper … focuses on the underlying structural factors for the reduction in volatility. It finds that the principal cause of the decline …

the forecasts of the volatility of market rates and the correlations between the various market rates (that is, the …