Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
964168 | Journal of International Money and Finance | 2011 | 15 Pages |
Abstract
This paper analyses the effects of fiscal shocks in selected Latin American countries using a two-country model for output, labour input, government spending and relative prices. Dynamic simulation techniques are then applied, in particular to shed light on the possible effects of fiscal imbalances on the real exchange rate. Using quarterly data over the period 1980–2006, we find that in a majority of cases fiscal shocks are the main driving force of real exchange rate fluctuations.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Guglielmo Maria Caporale, Davide Ciferri, Alessandro Girardi,