RBA Annual Conference – 2005 Declining Output Volatility: What Role for Structural Change?

Table 3: Correlations – Five-year Block Data

	GDP volatility	Product market regulations	Days lost to labour disputes	Monetary policy dummy	Inflation volatility	Oil price volatility	Financial liberalisation	Trade openness
GDP volatility	1.00
Product market regulations	0.25	1.00
Days lost to labour disputes	0.24	0.26	1.00
Monetary policy dummy	−0.28	−0.30	−0.46	1.00
Inflation volatility	0.39	0.42	0.35	−0.47	1.00
Oil price volatility	0.16	0.26	0.38	−0.34	0.42	1.00
Financial liberalisation	−0.14	−0.45	−0.31	0.44	−0.43	−0.24	1.00
Trade openness	0.04	0.14	−0.19	0.12	−0.08	−0.03	−0.15	1.00
Volatility of the cyclically-adjusted fiscal balance	0.07	−0.08	0.07	−0.16	0.16	0.02	−0.14	0.02
Notes: Correlations for the volatility of the cyclically-adjusted fiscal balance are based on only 90 observations due to missing data for some countries. Product market regulations and monetary policy variables are lagged as discussed in the text.