Resumen de Daily Business and External Condition Indices for the Australian Economy.

JEFFREY SHEEN, Stefan Trück, Ben Zhe Wang

• We estimate an unobservable domestic business conditions index for Australia using a variety of observable macroeconomic and financial variables, relating it to an unobservable external index involving external variables relevant to Australia. Our small open economy, dynamic factor model uses stock and flow variables arriving at mixed frequencies. We find important links between the domestic and external indices, consistent with the small open economy assumption.