Open AccessPosted Content
Real Exchange Rate Effects of Fiscal Policy
Jeffrey D. Sachs,Charles Wyplosz +1 more
Reads0
Chats0
TLDR
In this paper, the authors developed a framework for analyzing the effects of fiscal policy on the real exchange rate, including the short-run impact of various types of fiscal measures as well as the dynamics of adjustment to long-run steady states.Abstract:
This 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.read more
Citations
More filters
Journal ArticleDOI
U.S. Federal indebtedness and the conduct of fiscal policy
TL;DR: The authors examined whether the conduct of U.S. fiscal policy since the 1920s has been influenced by constraints on the accumulated stock of outstanding Federal debt and found that during most of the inter- and post-war period, policy in effect stabilized the Federal debt relative to GNP.
Journal ArticleDOI
Exchange Rate Economics: 1986
TL;DR: In the past fifteen years key exchange rates have moved in larger and more persistent ways than advocates of flexible rates in the late 1960s would have left anyone free to imagine as discussed by the authors.
Journal ArticleDOI
Government spending and the real exchange rate
TL;DR: This article studied the effect of government spending on the real exchange rate in an open economy version of the Sidrauski model with a time-varying rate of time preference that introduces complementarity between consumption at different points in time.
Posted Content
Budget deficits, exchange rates and the current account: theory and U. S. evidence
Posted Content
Macroeconomic Policies in the OECD and Ldc External Adjustmemt
TL;DR: In this article, the authors describe a simulation model for analyzing the effects of macroeconomic policies in the OECD on global macroeconomic equilibrium, focusing on the effects on developing countries of alternative mixes of monetary and fiscal policies.