Fiscal Policies and Real Exchange Rates in the World Economy

Released on by Jacob A. Frenkel
preview-18

  • Fiscal Policies and Real Exchange Rates in the World Economy Book Detail

  • Author : Jacob A. Frenkel
  • Release Date : 1986
  • Publisher :
  • Genre : Budget deficits
  • Pages : 68
  • ISBN 13 :
  • File Size : 13,13 MB
DOWNLOAD BOOK

Fiscal Policies and Real Exchange Rates in the World Economy by Jacob A. Frenkel PDF Summary

Book Description: This paper examines the effects of fiscal policies on the evolution of real rates of interest and real exchange rates in the interdependent world economy. We construct an analytical framework suitable for a detailed examination of the various channels through which these variables are influenced by government spending and by tax policies. The analytical framework employs a general equilibrium approach highlighting the roles played by wealth effects and by temporal and intertemporal substitution effects. The general principle illustrated by the analysis of the dynamic effects of budget deficits is that the consequences of temporary tax policies stretch beyond the period during which the temporary policies are in effect. The counterpart to these dynamic implications is the rise in the economy's external debt induced by the budget deficit the service of which stretches into the indefinite future. By series of examples, allowing for both distortionary and non-distortionary taxes and for various patterns of government spending, it is shown that the quantitative and qualitative effects of fiscal policies on real exchange rates, real interest rates, debt accumulation and the like depend critically on the commodity composition of government spending and its intertemporal allocations on the one hand, and on the details of government debt issue and tax structure, including the timing of taxes and borrowing and the types of taxes used to finance the budget, on the other hand.

Disclaimer: www.yourbookbest.com does not own Fiscal Policies and Real Exchange Rates in the World Economy books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

Fiscal Policy and the Real Exchange Rate

Fiscal Policy and the Real Exchange Rate

File Size : 55,55 MB
Total View : 1492 Views
DOWNLOAD

Government spending on infrastructure has recently increased sharply in many emerging-market economies. This paper examines the mechanism through which public i