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| Content Provider | Springer Nature Link |
|---|---|
| Author | Makin, Anthony J. |
| Copyright Year | 2001 |
| Abstract | This paper proposes an alternative framework for examining the international macroeconomic impact of domestic monetary and fiscal policies and focuses on the distinction between national spending and national production and the reactive behavior of foreign investors to changing external account balances. It demonstrates that under a floating exchange rate regime, monetary and fiscal policies can affect aggregate expenditure and output quite differently, with important implications for the behavior of the exchange rate, the current account balance, and national income in the short run, as well as the economy's price level in the long run. In particular, this paper predicts that expansionary monetary and fiscal policies tend to depreciate the currency and only temporarily raise gross domestic product and the current account surplus, although permanently raise the domestic price level. |
| Starting Page | 337 |
| Ending Page | 344 |
| Page Count | 8 |
| File Format | |
| ISSN | 10830898 |
| Journal | International Advances in Economic Research |
| Volume Number | 7 |
| Issue Number | 3 |
| e-ISSN | 1573966X |
| Language | English |
| Publisher | Kluwer Academic Publishers |
| Publisher Date | 2001-01-01 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Economic Growth International Economics Macroeconomics/Monetary Economics Microeconomics |
| Content Type | Text |
| Resource Type | Article |
| Subject | Economics and Econometrics |
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