Productive Government Spending, Welfare and Exchange Rate Dynamics
This study analyses the consequences of productive government spending on the international transmission of fiscal policy. A standard result in the new open economy macroeconomics literature is that a fiscal shock depreciates the exchange rate. I demonstrate that the response of the exchange rate de...
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| Format: | Article |
| Language: | English |
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Institute of Public Finance
2008-06-01
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| Series: | Financial Theory and Practice |
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| Online Access: | http://www.ijf.hr/eng/FTP/2008/2/tervala.pdf |