Fiscal policy and the real exchange rate: some evidence from Spain
Oscar Bajo-Rubio (),
Burcu Berke () and
Vicente Esteve ()
Additional contact information
Burcu Berke: Niğde Ömer Halisdemir University
Vicente Esteve: Universidad de Valencia
Empirica, 2020, vol. 47, issue 2, No 3, 267-280
Abstract The factors influencing the real exchange rate are an important issue for a country’s price competitiveness, which is especially relevant to those countries belonging to a monetary union. In this paper, we analyse the relationship between fiscal policy and the real exchange rate for the case of Spain. In particular, we explore how changes in government spending, differentiating between consumption and investment, can affect the long-run evolution of the real exchange rate vis-à-vis the euro area. The distinction between two alternative definitions of the real exchange rate, based on consumption price indices and export prices, respectively, will also prove to be relevant for the results.
Keywords: Real exchange rate; Government consumption; Government investment (search for similar items in EconPapers)
JEL-codes: E62 F31 F41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10663-018-9415-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Fiscal policy and the real exchange rate: Some evidence from Spain (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:empiri:v:47:y:2020:i:2:d:10.1007_s10663-018-9415-9
Ordering information: This journal article can be ordered from
http://www.springer. ... ration/journal/10663
Access Statistics for this article
Empirica is currently edited by Fritz Breuss and Fritz Breuss
More articles in Empirica from Springer, Austrian Institute for Economic Research, Austrian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().