Impacts of flexible exchange rates and government debt on output

Yu Hsing

Journal of the Asia Pacific Economy, 2004, vol. 9, issue 1, 1-9

Abstract: Based on the IS-LM model and applying the GARCH(m, n) process, the author finds that the depreciation of the Thai baht, more government taxes, or higher domestic debt are expected to reduce real GDP and that an increase in government spending, real quantity of money, world output or foreign debt are expected to raise real output. Therefore, the positive benefits of baht depreciation are outweighed by negative impacts. The negative impact of domestic debt suggests that the government should pursue a responsible fiscal policy in the long run. The VAR model is applied to estimate impulse response functions to trace the shocks of these variables on real GDP.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860310001628267 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjapxx:v:9:y:2004:i:1:p:1-9

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860310001628267

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().