학술저널
Exchange-Rate Regimes and the Effectiveness of Fiscal Policy
Exchange-Rate Regimes and the Effectiveness of Fiscal Policy
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제26권 제1호
-
2011.0329 - 44 (16 pages)
- 0
How does the potency of fiscal policy depend on a country`s exchange-rate regime? The Mundell-Fleming theoretical model predicts that fiscal policy can affect output under both fixed and flexible exchange rates, but that the effect is larger when the exchange rate is fixed. Using a panel data set of 61 countries for the 1951-2007 period, the paper shows that fiscal policy is indeed more potent under fixed exchange rates than under flexible, and that the difference is substantial: the estimated models imply that maintaining a fixed exchange rate raises the long-run fiscal multiplier by roughly a third.
Ⅰ. Introduction
Ⅱ. The Data
Ⅲ. Empirical Evidence
Ⅳ. Discussion and Conclusions
(0)
(0)