Government Purchases and Relative Prices in a Two-Country World.

The effects of government expenditures on interest rates, terms of trade, and real exchange rates are examined in a three-good (importables, exportables, nontradables), two-country, intertemporal, optimizing model. Temporary spending increases (on tradable or nontradable goods) may raise or lower th...

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Ente Autore: International Monetary Fund
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 1989.
Serie:IMF Working Papers; Working Paper ; No. 1989/028
Accesso online:Full text available on IMF
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245 1 0 |a Government Purchases and Relative Prices in a Two-Country World. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1989. 
300 |a 1 online resource (52 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a The effects of government expenditures on interest rates, terms of trade, and real exchange rates are examined in a three-good (importables, exportables, nontradables), two-country, intertemporal, optimizing model. Temporary spending increases (on tradable or nontradable goods) may raise or lower the world return on internationally traded bonds and may improve or worsen the current account of the country undergoing the fiscal expansion. The results are shown to differ substantially from those obtained in models employing a higher degree of commodity aggregation. The determinants of the comovement between the terms of trade and the real exchange rate are also examined. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1989/028 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1989/028/001.1989.issue-028-en.xml  |z IMF e-Library