Fiscal shocks and the exchange rate

Giorgio Di Giorgio, Salvatore Nisticò and Guido Traficante

No 5/14, Working Papers from Sapienza University of Rome, DISS

Abstract: This paper studies how the interaction between the monetary policy regime and the degree of home bias in public consumption affects the exchange-rate response to fiscal shocks in dynamic open-economy models. Our analysis compares the classic Redux model of Obstfeld and Rogoff (1995) and a modern New Keynesian DSGE two-country model, and highlights the substantially different transmission mechanism between the two.

Keywords: Redux Model; Exchange Rate; Fiscal Shocks; Endogenous Monetary and Fiscal Policy. (search for similar items in EconPapers)
JEL-codes: E52 E62 F41 F42 (search for similar items in EconPapers)
Date: 2014-07
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.diss.uniroma1.it/sites/default/files/al ... icoetal_wp5_2014.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.diss.uniroma1.it:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Working Paper: Fiscal shocks and the exchange rate (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:saq:wpaper:5/14

Access Statistics for this paper

More papers in Working Papers from Sapienza University of Rome, DISS Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Montalbano (pierluigi.montalbano@uniroma1.it).