RDP 2011-05: Terms of Trade Shocks: What are They and What Do They Do? Appendix B: Robustness Checks
December 2011
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![Figure B1: Responses of World Variables to Terms of
Trade Shocks](images/figure-b1.gif)
![Figure B2: Responses of Domestic Variables to Terms
of Trade Shocks](images/figure-b2.gif)
![Figure B3: Historical Decompositions of Export and
Import Price Inflation](images/figure-b3.gif)
![Figure B4: Historical Decompositions of World Output
and the Terms of Trade](images/figure-b4.gif)
![Figure B5: Historical Decompositions of The Real Exchange
Rate and Domestic Output](images/figure-b5.gif)
![Figure B6: Historical Decompositions of Inflation and
the Nominal Interest Rate](images/figure-b6.gif)
πx | πm | Δyw | Δq | Δyd | πd | rd | |
---|---|---|---|---|---|---|---|
World demand shock | |||||||
Median target | 24 | 21 | 55 | 19 | 15 | 10 | 39 |
One std dev interval | (21,45) | (12,38) | (30,69) | (14,37) | (12,30) | (6,25) | (15,52) |
Commodity-market specific shock | |||||||
Median target | 69 | 61 | 22 | 49 | 16 | 5 | 5 |
One std dev interval | (42,68) | (40,69) | (15,42) | (18,47) | (5,18) | (5,21) | (4,28) |
Globalisation shock | |||||||
Median target | 7 | 18 | 24 | 8 | 11 | 16 | 4 |
One std dev interval | (6,20) | (12,29) | (7,37) | (4,15) | (4,17) | (5,20) | (2,17) |
Shocks to domestic block | |||||||
Median target | 24 | 58 | 69 | 53 | |||
One std dev interval | (21,42) | (45,68) | (45,71) | (25,59) |
![Figure B7: Historical Decompositions of Tradable and
Non-tradable Inflation](images/figure-b7.gif)