Foreign influence drives decline in Australian output volatility, impacting global economy.
The study looked at why Australia's economy became less unpredictable in the 1980s. It found that changes in the US and Japanese economies also played a role in reducing Australia's economic ups and downs. By analyzing how these countries' economies affect each other, the researchers discovered that they are all more connected now, leading to less volatility in Australia. Other factors like better inventory management and labor market conditions also helped stabilize Australia's economy.