Kim, Jun Il.
Fiscal Policy and the Exchange Rate-Current Account Nexus Jun Il Kim. [electronic resource] / Jun Il Kim. - Washington, D.C. : International Monetary Fund, 2007. - 1 online resource (13 p.) - IMF Working Papers; Working Paper ; No. 07/27 . - IMF Working Papers; Working Paper ; No. 07/27 .
By using a simple intertemporal model of the current account, I. show.that the exchange rate elasticity of the trade balance would ceteris paribus be smaller for countries with higher government spending ratios (relative to GDP) and with more limited scope for private consumption smoothing. This finding may have important implications for the design of adjustment programs and for resolving current global imbalances. It could also help explain and reconcile mixed empirical findings on trade elasticities.
1451865910 : 18.00 USD
1018-5941
10.5089/9781451865912.001 doi
Consumption Smoothing
Exchange Rate Elasticity of Trade Balance
Exchange Rate
Fiscal Policy
Government Spending
Real Exchange Rate
Fiscal Policy and the Exchange Rate-Current Account Nexus Jun Il Kim. [electronic resource] / Jun Il Kim. - Washington, D.C. : International Monetary Fund, 2007. - 1 online resource (13 p.) - IMF Working Papers; Working Paper ; No. 07/27 . - IMF Working Papers; Working Paper ; No. 07/27 .
By using a simple intertemporal model of the current account, I. show.that the exchange rate elasticity of the trade balance would ceteris paribus be smaller for countries with higher government spending ratios (relative to GDP) and with more limited scope for private consumption smoothing. This finding may have important implications for the design of adjustment programs and for resolving current global imbalances. It could also help explain and reconcile mixed empirical findings on trade elasticities.
1451865910 : 18.00 USD
1018-5941
10.5089/9781451865912.001 doi
Consumption Smoothing
Exchange Rate Elasticity of Trade Balance
Exchange Rate
Fiscal Policy
Government Spending
Real Exchange Rate