Using Idonesia's Real Exchange Rate to Test Ricardian Equivalence

Y. Abimanyu

Working Papers from University of Birmingham - International Financial Group

Abstract: Using Indonesia as a study case, this paper analyses the relationship between the actual real exchange rate, and other macroeconomic variables. The estimate shows that, out of nine independant explanatory variables, only government consumption and the fiscal deficit have significant effects on the real echange rate. Increases in both government consumption and the fiscal deficit appreciate the real exchange rate. This finding rejects Ricardian equivalence.

Keywords: FISCAL POLICY; MACROECONOMICS (search for similar items in EconPapers)
JEL-codes: E62 F41 O53 (search for similar items in EconPapers)
Pages: 17 pages
Date: 1997
References: Add references at CitEc
Citations:

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:fth:birmif:97-04

Access Statistics for this paper

More papers in Working Papers from University of Birmingham - International Financial Group The University of Birmingham; International Financial Group, Birmingham B15 2T T, United Kingdom..
Bibliographic data for series maintained by Thomas Krichel (krichel@openlib.org).