Is Real Depreciation and More Government Spending Expansionary? The Case of Montenegro
Employing an extended IS-MP-AS model to study the effects of the exchange rate, fiscal policy and other related variables in Montenegro, the paper finds that real depreciation of the Euro, a lower government spending-to-GDP ratio, a lower real lending rate in the Euro area, a lower lagged real oil p...
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| Format: | Article |
| Language: | English |
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Sciendo
2017-12-01
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| Series: | Review of Economic and Business Studies |
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| Online Access: | https://doi.org/10.1515/rebs-2017-0056 |
| Summary: | Employing an extended IS-MP-AS model to study the effects of the exchange rate, fiscal policy and other related variables in Montenegro, the paper finds that real depreciation of the Euro, a lower government spending-to-GDP ratio, a lower real lending rate in the Euro area, a lower lagged real oil price, a higher lagged real GDP in Germany, and a lower expected inflation rate would promote economic growth. |
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| ISSN: | 2068-7249 |