The International Spillover of Fiscal and Technology Shocks before the Crisis: The case of the UK and Italy

Elham Saeidinezhad

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we attempt to shed new light on the dynamic impacts of gov- ernment spending and technology shocks on the real exchange rate for the Euro area. The main idea under this identification scheme is to let the data speak about the behavior of the interested variables. Moreover, this paper investigates the impacts of fiscal policy and technology shock jointly in contrast to most of the literature which just focuses on one shock only. Our investigation suggests that the real exchange rate appreciates (falls) following an expansionary fiscal shock. It appreciates in response to a positive technology shock as well however after an on impact depreciation (increase) which lasts for 8 quarters.

Keywords: Fiscal Policy; Technology Shock; International Spillover; Financial Crisis; VAR (search for similar items in EconPapers)
JEL-codes: C32 E24 E32 E62 (search for similar items in EconPapers)
Date: 2014-03
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/98556/1/MPRA_paper_98556.pdf original version (application/pdf)

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:pra:mprapa:98556

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().