"Interest rates, exchange rates, and aggregate supply": A comment

Wen Ya Chang, Ching Chong Lai, Yun Peng Chu

研究成果: 雜誌貢獻文章

摘要

The first part of this paper revises and extends Sauernheimer's model by considering the stock-flow interaction between the net foreign assets and the current account beyond the short run, and residents who demand real instead of nominal foreign assets. It is found that an expansionary fiscal policy may or may not raise output in the long run, but it will raise output if and only if it lowers the igterest rate and the price level. The second part of this paper further considers lagged price adjustment in the output market. It is found that the effect of expansionary fiscal policy on output is again ambiguous; however, if price in the output market adjusts with enough speed, stability requires that the effect be negative.

原文英語
頁(從 - 到)501-510
頁數10
期刊Journal of Macroeconomics
12
發行號3
DOIs
出版狀態已發佈 - 1990
對外發佈Yes

指紋

Exchange rates
Interest rates
Aggregate supply
Fiscal policy
Residents
Current account
Interaction
Net foreign assets
Assets
Price adjustment
Short-run
Price level

ASJC Scopus subject areas

  • Economics and Econometrics

引用此文

"Interest rates, exchange rates, and aggregate supply" : A comment. / Chang, Wen Ya; Lai, Ching Chong; Chu, Yun Peng.

於: Journal of Macroeconomics, 卷 12, 編號 3, 1990, p. 501-510.

研究成果: 雜誌貢獻文章

Chang, Wen Ya ; Lai, Ching Chong ; Chu, Yun Peng. / "Interest rates, exchange rates, and aggregate supply" : A comment. 於: Journal of Macroeconomics. 1990 ; 卷 12, 編號 3. 頁 501-510.
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