Fiscal multiplier in the small open economy under fixed exchange rates
This paper discusses theoretical aspects of the fiscal policy in the special economic system of the small open economy under fixed exchange rates. The author lays stress on the size of the fiscal multiplier as an analytical expression of the structure of this economy. The first part describes fiscal multiplier in the close economy, the second defines with more precision the open-economy fiscal multiplier and précis the final effects of national savings and their functions in the economy with context of the external balance and problems of the interest rates level, interest rates structure and demand for money in the context of high capital mobility on domestic output. The results of the study suggest that size of the open-economy fiscal multiplier depends on fiscal policy effects upon current account solvency and sustainability. In monetary economy the fiscal policy is also complicated by demand for and supply of money functions elasticities.
Volume (Year): 1999 (1999)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3|
Web: http://www.vse.cz/polek/ Email:
When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:1999:y:1999:i:4:id:55. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vaclav Subrta)
If references are entirely missing, you can add them using this form.