This paper explores the stabilisation properties of fiscal policy in Malaysia using a model incorporating nonlinearities into the dynamic relationship between fiscal policy and real economic activity over the growth cycle. The paper also investigates how output multipliers for government...

A sticky-price model with minimal assumptions for identification is used to motivate a time-varying model that allows for state dependent innovations to explore the trade balance dynamics of a group of East Asian economies. This paper shows that the correlation between the trade balance and the...

type="main" xml:id="ecca12076-abs-0001" <p>We investigate the effect of oil price shocks on UK inflation using a time-varying vector autoregression with stochastic volatility. The estimates show that the oil price–inflation pass-through declined from the early 1980s until the mid/late 1990s....</p>

Abstract This paper examines the time-varying time series processes of the interaction between government fiscal deficits, the current account balance and the real exchange rate for the U.K. and U.S. economies. This is achieved in a novel way by estimating a time-varying vector autoregression...