Is real depreciation or more government deficit expansionary? The case of Macedonia

Yu Hsing
Additional contact information
Yu Hsing: Southeastern Louisiana University, Hammond, Louisiana, USA

Theoretical and Applied Economics, 2019, vol. XXVI, issue 1(618), Spring, 51-60

Abstract: The paper finds that real depreciation of the denar reduces real GDP and that more government deficit spending as a percent of GDP raises real GDP. In addition, a lower world real interest rate, a higher lagged world real income, a lower real oil price or a lower expected inflation would increase real GDP. It suggests that the negative impact of real depreciation such as higher import costs and domestic inflation and less international capital inflows dominates the positive impact of real depreciation such as more exports.

Keywords: currency depreciation; government deficits; world interest rates; world income; oil prices; IS-MP-AS model. (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/articole/1374.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1374&rid=134 (text/html)

Related works:
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:agr:journl:v:xxvi:y:2019:i:1(618):p:51-60

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().