Real Exchange Rate Effects of Fiscal Policy
AbstractThis paper develops a framework for analyzing the effects of fiscal policy on the real exchange rate. The short-run impact of various types of fiscal measures are considered as well as the dynamics of adjustment to long-run steady states. The analysis and related simulations suggest that the effect of fiscal policy changes on the real exchange rate can vary widely and will depend closely on a number of structural features, including the degree of asset substitutability,the composition of government spending, and the initial size of the public debt and net external position.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1255.
Date of creation: Jan 1984
Date of revision:
Note: ITI IFM
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
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.:
- William H. Branson & Willem H. Buiter, 1982. "Monetary and Fiscal Policy with Flexible Exchange Rates," NBER Working Papers 0901, National Bureau of Economic Research, Inc.
- Turnovsky, Stephen J., 1976. "The dynamics of fiscal policy in an open economy," Journal of International Economics, Elsevier, vol. 6(2), pages 115-142, May.
- Christ, Carl F, 1979. "On Fiscal and Monetary Policies and the Government Budget Restraint," American Economic Review, American Economic Association, vol. 69(4), pages 526-38, September.
- Branson, William H, 1976. "The Dual Roles of the Government Budget and the Balance of Payments in the Movement from Short-Run to Long-Run Equilibrium," The Quarterly Journal of Economics, MIT Press, vol. 90(3), pages 345-67, August.
- Kouri, Pentti J K, 1976. " The Exchange Rate and the Balance of Payments in the Short Run and in the Long Run: A Monetary Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 78(2), pages 280-304.
- Hodrick, Robert J., 1980. "Dynamic effects of government policies in an open economy," Journal of Monetary Economics, Elsevier, vol. 6(2), pages 213-239, April.
- Eichengreen, Barry, 1989.
"International Monetary Istability Between the Wars: Structural Flaws or Misguided Policies?,"
Department of Economics, Working Paper Series
qt5r60q801, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Barry Eichengreen., 1989. "International Monetary Instability Between the Wars: Structural Flaws or Misguided Policies?," Economics Working Papers 89-118, University of California at Berkeley.
- Eichengreen, Barry, 1989. "International Monetary Stability Between the Wars: Structural Flaws or Misguided Policies?," CEPR Discussion Papers 348, C.E.P.R. Discussion Papers.
- Barry Eichengreen, 1991. "International Monetary Instability Between the Wars: Structural Flaws or Misguided Policies?," NBER Working Papers 3124, National Bureau of Economic Research, Inc.
- Reinhart, Carmen, 1988. "Commodity markets and the international transmission of fiscal shocks," MPRA Paper 13411, University Library of Munich, Germany.
- McKibbin, Warwick & Sachs, Jeffrey, 1985.
"Macroeconomic Policies in the OECD and LDC External Adjustment,"
CEPR Discussion Papers
56, C.E.P.R. Discussion Papers.
- Jeffrey Sachs & Warwick J. McKibbin, 1985. "Macroeconomic Policies in the OECD and LDC External Adjustmemt," NBER Working Papers 1534, National Bureau of Economic Research, Inc.
- Marialuz Moreno Badia & Alex Segura-Ubiergo, 2014. "Real Exchange Rate Appreciation in Emerging Markets: Can Fiscal Policy Help?," IMF Working Papers 14/1, International Monetary Fund.
- Richard Cantor & Robert Driskill, 1996. "Can a fiscal contraction strengthen a currency?: Some doubts about conventional Mundell-Fleming results," Research Paper 9629, Federal Reserve Bank of New York.
- Antoine Bouveret & Bruno Ducoudré, 2007.
"On the contingency of equilibrium exchange rates with time- consistent economic policies,"
Documents de Travail de l'OFCE
2007-08, Observatoire Francais des Conjonctures Economiques (OFCE).
- Bruno Ducoudre & Antoine Bouveret, 2007. "On the Contingency of Equilibrium Exchange Rates with Time - Consistent Economic Policies," Sciences Po publications 2007-08, Sciences Po.
- Barry J. Eichengreen, 1987.
"Trade deficits in the long run,"
Federal Reserve Bank of St. Louis, pages 239-285.
- Eichengreen, Barry & Wyplosz, Charles, 1986.
"The Economic Consequences of the Franc Poincare,"
CEPR Discussion Papers
136, C.E.P.R. Discussion Papers.
- International Monetary Fund, 2011. "Oil-Price Boom and Real Exchange Rate Appreciation," IMF Working Papers 11/268, International Monetary Fund.
- Bernd Hayo & Matthias Uhl, 2012. "Regional Effects of Federal Tax Shocks," MAGKS Papers on Economics 201217, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Michael Hutchison & Charles Pigott, 1984. "Budget deficits, exchange rates and the current account: theory and U. S. evidence," Economic Review, Federal Reserve Bank of San Francisco, issue Fall, pages 5-25.
- Alexius, Annika, 2000. "Supply Shocks and Real Exchange Rates," Working Paper Series 117, Sveriges Riksbank (Central Bank of Sweden).
- Turnovsky, Stephen J., 1986.
"Short-term and long-term interest rates in a monetary model of a small open economy,"
Journal of International Economics,
Elsevier, vol. 20(3-4), pages 291-311, May.
- Stephen J. Turnovsky, 1985. "Short-Term and Long-Term Interest Rates in a Monetary Model of a Small Open Economy," NBER Working Papers 1716, National Bureau of Economic Research, Inc.
- Kirkpatrick, Grant, 1984. "A continuous time cyclical growth model for the Federal Republic of Germany: Construction, estimation and analysis," Kiel Working Papers 219, Kiel Institute for the World Economy.
- repec:spo:wpecon:info:hdl:2441/6125 is not listed on IDEAS
- Tarlok Singh, 2007. "Intertemporal Optimizing Models Of Trade And Current Account Balance: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 25-64, 02.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.