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- W2000307501 abstract "I study the effect of government spending on the real exchange rate in an open economy version of the Sidrauski model with a time-varying rate of time preference that introduces complementarity between consumption at different points in time. I show that a balanced budget fiscal expansion causes a real depreciation and a current account surplus if the expansion falls on traded goods. If the increase falls instead on nontraded goods, both the ‘stylized’ results of a real appreciation and a current account deficit and the ‘perverse’ result of an appreciation and a surplus can occur." @default.
- W2000307501 created "2016-06-24" @default.
- W2000307501 creator A5050824786 @default.
- W2000307501 date "1987-05-01" @default.
- W2000307501 modified "2023-09-23" @default.
- W2000307501 title "Government spending and the real exchange rate" @default.
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- W2000307501 doi "https://doi.org/10.1016/s0022-1996(87)80022-3" @default.
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