EconPapers    
Economics at your fingertips  
 

Fiscal shocks and the exchange rate

Giorgio Di Giorgio (), Salvatore Nisticò () and Guido Traficante ()

No 5/14, Working Papers from Sapienza University of Rome, DISS

Abstract: This paper studies how the interaction between the monetary policy regime and the degree of home bias in public consumption affects the exchange-rate response to fiscal shocks in dynamic open-economy models. Our analysis compares the classic Redux model of Obstfeld and Rogoff (1995) and a modern New Keynesian DSGE two-country model, and highlights the substantially different transmission mechanism between the two.

Keywords: Redux Model; Exchange Rate; Fiscal Shocks; Endogenous Monetary and Fiscal Policy. (search for similar items in EconPapers)
JEL-codes: E52 E62 F41 F42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-opm
Date: 2014-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.diss.uniroma1.it/sites/default/files/al ... icoetal_wp5_2014.pdf (application/pdf)

Related works:
Working Paper: Fiscal shocks and the exchange rate (2014) Downloads
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:saq:wpaper:5/14

Access Statistics for this paper

More papers in Working Papers from Sapienza University of Rome, DISS Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Montalbano ().

 
Page updated 2019-11-06
Handle: RePEc:saq:wpaper:5/14