Description

The commodity price cycle has had a significant impact on mining economies. This paper describes the macroeconomic adjustment of Chile and Australia associated to the important increase in the price of their main exports and the following normalization. On the one hand, although mining investment grew strongly after 2008 - 2009 crisis and then showed a slowdown in both economies, the external account dynamics previous to the crisis showed the differing evolution of national savings. On the other hand, the path of the real and nominal exchange rates has presented relevant similarities; which we argue reflect monetary policy divergence in both economies vis a vis the United States.