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Is more government debt or currency depreciation expansionary? The case of Poland

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  • Yu HSING

    (Southeastern Louisiana University, Hammond, USA)

Abstract

This paper finds that Poland’s aggregate output is positively associated with the government debt-to-GDP ratio, the real effective exchange rate during 2002.Q4-2007.Q3, the real stock price and the real oil price and negatively impacted by the real effective exchange rate during 2007.Q4-2016.Q4, the real interest rate and the expected inflation rate. Hence, the current level of the debt-to-GDP ratio is sustainable, and real depreciation may be contractionary or expansionary depending upon the time period under consideration.

Suggested Citation

  • Yu HSING, 2017. "Is more government debt or currency depreciation expansionary? The case of Poland," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(612), A), pages 63-70, Autumn.
    • Handle: RePEc:agr:journl:v:3(612):y:2017:i:3(612):p:63-70
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