Work

Real Exchange Rate Effects of Fiscal Policy

Year: 1984

Type: report

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.

Source: National Bureau of Economic Research

DOI: 10.3386/w1255

Authors: Jeffrey Sachs, Charles Wyplosz

Institutions: National Bureau of Economic Research, Harvard University, Columbia University, INSEAD, University of Geneva, Centre for Economic Policy Research, Graduate Institute of International Studies

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1601271503

Cites: 6

Cited by: 52

Related to: 10