United States: Background Papers

International Monetary Fund

No 1995/094, IMF Staff Country Reports from International Monetary Fund

Abstract: This Background Paper on the United States examines the effect of fiscal deficit reduction in the context of the IMF’s multicountry simulation model, on the current account and the real exchange rate. The simulations suggest that, other things being equal, fiscal consolidation will tend to cause the real exchange rate to depreciate in the short term. The paper also estimates a long-term relationship between the real effective exchange rate for the U.S. dollar and a number of variables.

Keywords: ISCR; CR; dollar; OECD DAC; exchange rate volatility; inflation-output tradeoff; calendar year basis; credit reform principle; Income; Flat tax; Exchange rates; Personal income; Real exchange rates; South Asia; North America; Global; South America; Eastern Europe; East Asia (search for similar items in EconPapers)
Pages: 198
Date: 1995-10-03
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:1995/094

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