Fiscal Policy, the Real Exchange Rate and Traded Goods
Bibliographic Data
| ID | 9702921 |
|---|---|
| Authors | Tommaso Monacelli (Università Bocconi, IGIER, and CEPR), Roberto Perotti (0000-0002-4203-1644, Università Bocconi, IGIER, NBER and CEPR) |
| Year | 2010 |
| Volume | 120 |
| Issue | 544 |
| Pages | 437-461 |
| Publication date | 2010-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2010.02362.x |
| OpenAlex | W1582245595 |
| Language | EN |
| Citations received | 12 |
| References cited | 30 |
We estimate the effects of government spending shocks on the CPI real exchange rate, the trade balance and their co-movements with GDP and private consumption. We decompose the variations of the CPI real exchange rate into variations of the traded goods real exchange rate and the relative price of traded to non-traded goods. We reach three main conclusions: a rise in government spending induces a "depreciation" of the CPI real exchange rate and a trade balance deficit; private consumption rises in response to a government spending shock and therefore co-moves positively with the real exchange rate; both components of the CPI real exchange depreciate. Copyright © The Author(s). Journal compilation © Royal Economic Society 2010
Balance of trade · Consumption (sociology · Depreciation (economics · Economics · Effective exchange rate · Exchange rate · Fiscal policy · Government (linguistics · Government Expenditure · Government spending · Inflation (cosmology · Macroeconomics · Microeconomics · Monetary economics · Private consumption · Public finance · Relative price · Shock (circulatory · Fiscal Policy and Economic Growth · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
The evolving international effects of China's government spending
Structural Breaks and Current Accounts in Three Clubs of Eurozone Countries
Fiscal Stimulus with Spending Reversals
Trade Flows and Fiscal Multipliers
Military expenditures and macroeconomic indicators in selected countries of Asia and Africa
Hierarchical Bayesian Modelling of Macroeconomic Variables in Ghana
Effects of government spending shocks in China, Japan, and Korea
Government spending effects in low-income countries
Mr. Keynes Meets the Classics
Fiscal Stimulus under Sovereign Risk
Fiscal Policy in a Small Open Economy with Oil Sector and non-Ricardian Agents
Une analyse des multiplicateurs budgétaires
An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output
Production, growth and business cycles
Understanding the Effects of Government Spending on Consumption
Costly capital reallocation and the effects of government spending
Fiscal Stimulus with Spending Reversals
Nonseparable Preferences, Fiscal Policy Puzzles, and Inferior Goods
Accounting for U.S. Real Exchange Rate Changes
Exchange Rate Dynamics Redux
Large Devaluations and the Real Exchange Rate
Measuring the Impact of Fiscal Policy in the Face of Anticipation
| Unique citing works | 12 |
|---|---|
| Citations per year | 0,86 |
| Citation span | 2012 - 2026 (15) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 12 |