scholarly journals Real Exchange Rate Effects of Fiscal Policy

10.3386/w1255 ◽  
1984 ◽  
Author(s):  
Jeffrey Sachs ◽  
Charles Wyplosz
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Real Exchange Rate ◽  
Rate Effects

Questioning the puzzle: Fiscal policy, real exchange rate and inflation

2021 ◽  
Vol 133 ◽  
pp. 103524
Author(s):  
Laurent Ferrara ◽  
Luca Metelli ◽  
Filippo Natoli ◽  
Daniele Siena
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Real Exchange Rate

scholarly journals Is Real Depreciation or More Government Deficit Expansionary? The Case of Slovenia

2017 ◽  
Vol 12 (1) ◽  
pp. 50-56 ◽  
Author(s):  
Yu Hsing
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Real Exchange Rate ◽  
Central Government ◽  
Empirical Work ◽  
Labor Cost ◽  
Aggregate Output ◽  
The Real ◽  
Government Deficit ◽  
The Government

AbstractThe purpose of this paper is to examine the impacts of the real exchange rate, the government deficit and other relevant variables on aggregate output in Slovenia. Few of the previous studies have applied the AD/AS model to examine the impacts of major macroeconomic variables on aggregate output. This paper makes contributions to the literature by applying a rigorous model to examine how real GDP is affected by the real exchange rate, fiscal policy and other related variables. The exponential GARCH model is applied in empirical work. The paper finds that real depreciation of the Euro may affect Slovenia’s aggregate output positively or negatively and that more central government deficit as a percent of GDP does not affect aggregate output. In addition, Slovenia’s aggregate output is positively associated with the real stock price, the real oil price and real total labor cost or wage and is negatively influenced by the real lending rate and the expected inflation rate. Recent real depreciation of the Euro would help Slovenia’s aggregate output whereas expansionary fiscal policy would not be effective in stimulating the economy.

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