Is real depreciation expansionary? The case of the Czech Republic
Applying the aggregate demand and aggregate supply model and based on a quarterly sample during 2003.Q1 – 2015.Q4, this paper finds that Czech’s aggregate output is positively associated with real appreciation of the koruna, the real stock price, lagged German real GDP and real wages and negatively...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2016-09-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/1200.pdf
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| Summary: | Applying the aggregate demand and aggregate supply model and based on a
quarterly sample during 2003.Q1 – 2015.Q4, this paper finds that Czech’s aggregate
output is positively associated with real appreciation of the koruna, the real stock price,
lagged German real GDP and real wages and negatively influenced by the government
deficit as a percent of GDP, the real lending rate and the expected inflation rate. Recent
real depreciation of the koruna would not help Czech’s aggregate output, and recent
relatively low government deficit as a percent of GDP would raise aggregate output. |
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| ISSN: | 1841-8678 1844-0029 |