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Economic policy in India : for economic stimulus, or for austerity and volatility?

Sen, Sunanda; DasGupta, Zico - 2014

volatility and macroeconomic instability in the midst of the global recession. …

Persistent link: https://www.econbiz.de/10010385761

The impacts of public expenditure innovations on real exchange rate volatility in South Africa

Nuru, Naser Yenus; Gereziher, Hayelom Yrgaw - 2021

This study investigates the impacts of public expenditure innovations on exchange rate volatility in South Africa using … that public expenditure innovation has a significant depreciating trend impact on exchange rate volatility, and its impact … volatility does not rely on the direction of the innovation, it varies according to the state of the economy. Public expenditure …

Persistent link: https://www.econbiz.de/10012509885

The impact of the budget deficit on the currency and inflation in the transition economies

Milo, Petraq - In: Journal of Central Banking Theory and Practice 1 (2012) 1, pp. 25-57

This article investigates the causal linkage between budget deficit, monetary mass and inflation in the transition economies. It is focused on the impact of public expenditures growth on money supply growth, and it does not take in account the amount of budget deficit. We test the new hypothesis...

Persistent link: https://www.econbiz.de/10010687476

The response of inflation to its determinants : does it differ at short and long horizons?

Rashid, Abdul - In: International journal of economics and business research 6 (2013) 2, pp. 229-242

Persistent link: https://www.econbiz.de/10010351155

Fiscal policy and external adjustment: New evidence

Bouakez, Hafedh; Chihi, Foued; Normandin, Michel - In: Journal of International Money and Finance 40 (2014) C, pp. 1-20

Relatively little empirical evidence exists about countries' external adjustment to changes in fiscal policy and, in particular, to changes in taxes. This paper addresses this question by measuring the effects of tax and government spending shocks on the current account and the real exchange...

Persistent link: https://www.econbiz.de/10010719325

Government Spending Shocks, Sovereign Risk and the Exchange Rate Regime

Bonam, Dennis - 2014

Keynesian theory predicts output responses upon a fiscal expansion in a small open economy to be larger under fixed than floating exchange rates. We analyse the effects of fiscal expansions using a New Keynesian model and find that the reverse holds in the presence of sovereign default risk. By...

Persistent link: https://www.econbiz.de/10013061292

Productive Government Purchases and the Real Exchange Rate

Basu, Parantap - 2009

Empirical research documents that an exogenous rise in government purchases in a given country triggers a depreciation of its real exchange rate. This raises an important puzzle, as standard macro theories predict an appreciation of the real exchange rate. We argue that this prediction reflects...

Persistent link: https://www.econbiz.de/10013152945

The worst of both worlds : fiscal policy and fixed exchange rates

Born, Benjamin; D'Ascanio, Francesco; Müller, Gernot J.; … - 2019

Under fixed exchange rates, fiscal policy is an effective tool. According to classical views because it impacts the real exchange rate, according to Keynesian views because it impacts output. Both views have merit because the effects of government spending are asymmetric. A spending cut lowers...

Persistent link: https://www.econbiz.de/10012118599

Mr. Keynes meets the classics : government spending and the real exchange rate

Born, Benjamin; D'Ascanio, Francesco; Müller, Gernot J.; … - 2021

In economies with fixed exchange rates, the adjustment to government spending shocks is asymmetric. A fiscal expansion appreciates the real exchange rate but does not stimulate output. A fiscal contraction does not alter the exchange rate, but lowers output. We develop these insights in a...

Persistent link: https://www.econbiz.de/10012544252

Government spending and the exchange rate

Di Giorgio, Giorgio; Nisticò, Salvatore; Traficante, Guido - 2016

Contrary to widespread empirical evidence, standard NOEM models imply that the real exchange rate appreciates following an increase in public spending. This paper introduces productive government purchases and shows that the real exchange rate can depreciate after a positive spending shock, thus...

Persistent link: https://www.econbiz.de/10015409620