Is real depreciation or more government deficit expansionary? The case of Macedonia
The paper finds that real depreciation of the denar reduces real GDP and that more government deficit spending as a percent of GDP raises real GDP. In addition, a lower world real interest rate, a higher lagged world real income, a lower real oil price or a lower expected inflation would increase re...
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2019-03-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/1374.pdf
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| Summary: | The paper finds that real depreciation of the denar reduces real GDP and that more
government deficit spending as a percent of GDP raises real GDP. In addition, a lower world real
interest rate, a higher lagged world real income, a lower real oil price or a lower expected inflation
would increase real GDP. It suggests that the negative impact of real depreciation such as higher
import costs and domestic inflation and less international capital inflows dominates the positive
impact of real depreciation such as more exports. |
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| ISSN: | 1841-8678 1844-0029 |