منابع مشابه
Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate
Using panel structural VAR analysis and quarterly data from four industrialized countries, we document that an increase in government purchases leads to an expansion in output and private consumption, a deterioration in the trade balance, and a depreciation of the real exchange rate (i.e., a decrease in the domestic CPI relative to the exchange-rate adjusted foreign CPI). We propose an explanat...
متن کاملAuthor's Personal Copy Consumption, Government Spending, and the Real Exchange Rate
Using panel structural VAR analysis and quarterly data from four industrialized countries, we document that an increase in government purchases raises output and private consumption, deteriorates the trade balance, and depreciates the real exchange rate. This pattern of comovement poses a puzzle for both neoclassical and Keynesian models. An explanation based on the deep-habit mechanism is prop...
متن کاملGovernment Purchases and the Real Exchange Rate
Recent empirical research documents that an exogenous rise in government purchases in a given country triggers a persistent depreciation of its real exchange rate— which raises an important puzzle, as standard macro models predict an appreciation of the real exchange rate. This paper presents a simple model with limited international risk sharing that can account for the empirical real exchange...
متن کاملDollarization, Exchange Rate Regimes and Government Quality
The dollarization of the domestic banking system represents a source of vulnerability for emerging market countries, and a debate has emerged over whether the exchange rate regime has an impact on the degree of dollarization. This paper argues that the regime is far less important than the literature has previously claimed. Unofficial dollarization results from a lack of faith in the domestic c...
متن کاملNber Working Paper Series Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate
Using panel structural VAR analysis and quarterly data from four industrialized countries, we document that an increase in government purchases leads to an expansion in output and private consumption, a deterioration in the trade balance, and a depreciation of the real exchange rate (i.e., a decrease in the domestic CPI relative to the exchange-rate adjusted foreign CPI). We propose an explanat...
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ژورنال
عنوان ژورنال: International Review of Economics & Finance
سال: 2018
ISSN: 1059-0560
DOI: 10.1016/j.iref.2017.07.030