Is Currency Appreciation or Depreciation Expansionary in Kosovo?

Yu Hsing
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Yu Hsing: FSoutheastern Louisiana University, Hammond, LA, USA.

Zagreb International Review of Economics and Business, 2019, vol. 22, issue 1, 47-54

Abstract: Applying an extended IS-MP-AS model (Romer, 2000), this paper shows that real depreciation of the euro raises real GDP in Kosovo and that a lower real lending rate in the euro area, a higher real GDP in Germany, a lower real oil price, or a lower expected inflation rate would help increase real GDP. More government deficit spending as a percent of GDP does not affect real GDP. JEL Classification: F41, E62

Keywords: Real depreciation or appreciation; Budget deficits; Interest rates; Oil prices (search for similar items in EconPapers)
Date: 2019
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DOI: 10.2478/zireb-2019-0011

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