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The Composition of Government Spending and the Real Exchange Rate Author info | Abstract | Publisher info | Download info | Related research | Statistics Vahagn Galstyan and Philip R. Lane
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We show that the composition of government spending influences the long-run behaviour of the real exchange rate. We develop a two-sector small open economy model in which an increase in government consumption is associated with real appreciation, while an increase in government investment may generate real depreciation. Our empirical work confirms that government consumption and government investment have differential effects on the real exchange rate and the relative price of nontradables.
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Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number
iiisdp257.
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Date of creation: 07 Jul 2008Date of revision:
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2002.
"External wealth, the trade balance, and the real exchange rate ,"
European Economic Review ,
Elsevier, vol. 46(6), pages 1049-1071, June.
[Downloadable!] (restricted)
Other versions:
Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2002.
"External Wealth, the Trade Balance and the Real Exchange Rate ,"
CEPR Discussion Papers
3153, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Philip R. Lane & Gian Maria Milesi-Ferretti, 2001.
"External Wealth, the Trade Balance, and the Real Exchange Rate ,"
CEG Working Papers
200113, Trinity College Dublin, Department of Economics.
[Downloadable!] Lane, Philip R. & Gian Maria Milesi-Ferretti, 2002.
"External Wealth, the Trade Balance, and the Real Exchange Rate ,"
Royal Economic Society Annual Conference 2002
119, Royal Economic Society.
[Downloadable!] Philip R. Lane & Gian Maria Milesi-Ferretti, 2001.
"External Wealth, the Trade Balance, and the Real Exchange Rate ,"
Trinity Economics Papers
200121, Trinity College Dublin, Department of Economics.
[Downloadable!] Gian Maria Milesi-Ferretti & Philip R. Lane, 2002.
"External Wealth, the Trade Balance, and the Real Exchange Rate ,"
IMF Working Papers
02/51, International Monetary Fund.
[Downloadable!] Ph.R. Lane & G.M. Milesi-Ferretti, 2003.
"External Wealth, the Trade Balance, and the Real Exchange Rate ,"
DNB Staff Reports (discontinued)
80, Netherlands Central Bank.
[Downloadable!] Vahagn Galstyan, 2007.
"Country Size and the Transfer Effect ,"
The Institute for International Integration Studies Discussion Paper Series
iiisdp204, IIIS.
[Downloadable!]
Sarma Jayanthi & Tamim Bayoumi & Jaewoo Lee, 2005.
"New Rates from New Weights ,"
IMF Working Papers
05/99, International Monetary Fund.
[Downloadable!]
Other versions: Philip R. Lane & Gian Maria Milesi-Ferretti, 2004.
"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
The Review of Economics and Statistics ,
MIT Press, vol. 86(4), pages 841-857, 02.
[Downloadable!] (restricted)
Other versions:
Philip R. Lane & Gian Maria Milesi-Ferretti, 2000.
"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
Working Papers
062000, Hong Kong Institute for Monetary Research.
[Downloadable!] Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2000.
"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
CEPR Discussion Papers
2511, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Gian Maria Milesi-Ferretti & Philip R. Lane, 2000.
"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates ,"
IMF Working Papers
00/123, International Monetary Fund.
Jaewoo Lee & Gian Maria Milesi-Ferretti & Luca Antonio Ricci, 2008.
"Real Exchange Rates and Fundamentals: A Cross-Country Perspective ,"
IMF Working Papers
08/13, International Monetary Fund.
[Downloadable!]
Kenneth A. Froot & Kenneth Rogoff, 1991.
"The EMS, the EMU, and the Transition to a Common Currency ,"
NBER Working Papers
3684, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Tommaso Monacelli & Roberto Perotti, 2008.
"Openness and the Sectoral Effects of Fiscal Policy ,"
Journal of the European Economic Association ,
MIT Press, vol. 6(2-3), pages 395-403, 04-05.
[Downloadable!] (restricted)
Bela Balassa, 1964.
"The Purchasing-Power Parity Doctrine: A Reappraisal ,"
Journal of Political Economy ,
University of Chicago Press, vol. 72, pages 584.
[Downloadable!] (restricted)
Jose De Gregorio & Holger C. Wolf & Alberto Giovannini, 1994.
"International Evidence on Tradables and Nontradables Inflation ,"
IMF Working Papers
94/33, International Monetary Fund.
Other versions:
Jose De Gregorio & Alberto Giovannini, 1993.
"International Evidence on Tradables and Nontradable Inflation ,"
NBER Working Papers
4438, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Jose De Gregorio & Alberto Giovannini & Holger C. Wolf, 1993.
"International Evidence on Tradables and Nontradables Inflation ,"
Working Papers
93-17, New York University, Leonard N. Stern School of Business, Department of Economics.
De Gregorio, Jose & Giovannini, Alberto & Wolf, Holger C., 1994.
"International evidence on tradables and nontradables inflation ,"
European Economic Review ,
Elsevier, vol. 38(6), pages 1225-1244, June.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Rod Tyers & Ling Huang, .
"Combating China'S Export Contraction: Fiscal Expansion Or Accelerated Industrial Reform? ,"
CAMA Working Papers
2009-02, Australian National University, Centre for Applied Macroeconomic Analysis.
[Downloadable!]
Other versions: Galstyan, Vahagn & Lane, Philip R., 2009.
"Fiscal Policy and International Competitiveness: Evidence from Ireland ,"
The Economic and Social Review ,
Economic and Social Studies, vol. 40(3), pages 299â315.
[Downloadable!]
Other versions: Agustin S. Benetrix, IIIS, Trinity College Dublin. Philip R. Lane, IIIS, Trinity College Dublin, 2009.
"Fiscal Shocks and The Sectoral Composition of Output ,"
The Institute for International Integration Studies Discussion Paper Series
iiisdp294, IIIS.
[Downloadable!]
Lane, Philip R., 2009.
"A New Fiscal Strategy for Ireland ,"
The Economic and Social Review ,
Economic and Social Studies, vol. 40(2), pages 233â253.
[Downloadable!]
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