Responses of Argentine Output to Shocks to Monetary Policy, Fiscal Policy and Exchange Rates: A VAR Model

Yu Hsing

Applied Econometrics and International Development, 2004, vol. 4, issue 1

Abstract: Applying the VAR model and based on the equilibrium condition for aggregate demand and aggregate supply, the author finds that real GDP in Argentina responds negatively to a shock to the real interest rate, the external debt ratio, or the real exchange rate and positively to a shock to real stock prices or the lagged real GDP during some of the quarters. The response of real GDP to government deficit spending is insignificant. The depreciation of the peso harms real GDP. In view of these results, to stimulate the economy, the Argentine government needs to lower the real interest rate and the external debt ratio, maintain a healthy and stable stock market, and pursue a stable exchange rate

JEL-codes: E4 E5 F4 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.usc.es/economet/reviews/aeid412.pdf
No

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:eaa:aeinde:v:4:y:2004:i:1_2

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm

Access Statistics for this article

More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().