How do fiscal and technology shocks affect real exchange rates?
Using vector autoregressions on U.S. time series relative to an aggregate of industrialized countries, this paper provides new evidence on the dynamic effects of government spending and technology shocks on the real exchange rate and the terms of trade. To achieve identification, we derive robust re...
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| Main Authors: | , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
2011
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| In: |
Journal of international economics
Year: 2011, Volume: 83, Issue: 1, Pages: 53-69 |
| ISSN: | 0022-1996 |
| DOI: | 10.1016/j.jinteco.2010.08.005 |
| Online Access: | Verlag, Volltext: http://dx.doi.org/10.1016/j.jinteco.2010.08.005 Verlag, Volltext: http://www.sciencedirect.com/science/article/pii/S0022199610000851 
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| Author Notes: | Zeno Enders, Gernot J. Müller, Almuth Scholl |
| Summary: | Using vector autoregressions on U.S. time series relative to an aggregate of industrialized countries, this paper provides new evidence on the dynamic effects of government spending and technology shocks on the real exchange rate and the terms of trade. To achieve identification, we derive robust restrictions on the sign of several impulse responses from a two-country general equilibrium model. We find that both the real exchange rate and the terms of trade—whose responses are left unrestricted—depreciate in response to expansionary government spending shocks and appreciate in response to positive technology shocks. |
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| Item Description: | First online: 22 September 2010 Gesehen am 31.07.2017 |
| Physical Description: | Online Resource |
| ISSN: | 0022-1996 |
| DOI: | 10.1016/j.jinteco.2010.08.005 |