EconPapers    
Economics at your fingertips  
 

Government Deficit, Real Exchange Rate and International Transmission

Gabriella Chiesa ()

Bulletin of Economic Research, 1988, vol. 40, issue 3, 207-16

Abstract: This paper develops a two country-two goods, full intertemporal optimization model, which allows for short-r un wage rigidity, to analyze the relationship between deficit spendin g, real exchange rate, and intertemporal terms of trade, as well as t he international transmission of fiscal policy. It shows that deficit spending abroad unambiguously improves employment and investment abr oad, induces unemployment, and crowds out investment at home. Copyright 1988 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1988
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:bla:buecrs:v:40:y:1988:i:3:p:207-16

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0307-3378

Access Statistics for this article

More articles in Bulletin of Economic Research from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-09-22
Handle: RePEc:bla:buecrs:v:40:y:1988:i:3:p:207-16