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Fiscal policy and adjustment in a foreign exchange constrained economy: Evidence from Malawi

Author

Listed:
  • Amos C. Peters
  • Bertha C. Bangara

Abstract

Most of the recent literature analysing the adjustments of macroeconomic variables to fiscal policy shocks rely on the inclusion of non-Ricardian households to generate a positive response of consumption to an increase in government spending. This paper examines the dynamic effects of government financing behaviour in a foreign exchange constrained low income economy on key […]

Suggested Citation

  • Amos C. Peters & Bertha C. Bangara, 2019. "Fiscal policy and adjustment in a foreign exchange constrained economy: Evidence from Malawi," Working Papers 778, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:778
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    More about this item

    Keywords

    Africa; central bank; DSGE; fiscal policy;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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