The Effects of Monetary and Fiscal Policy on Aggregate Demand in a Small Open Economy : An Application of the Structural Error Correction Model /

This paper empirically analyzes the short-run effects of monetary and fiscal policy on aggregate demand, using the two-step structural error correction method. This method has an advantage over the standard reduced-form error correction method in providing a meaningful interpretation for impulse res...

Full description

Bibliographic Details
Main Author: Konuki, Tetsuya
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2000.
Series:IMF Working Papers; Working Paper ; No. 2000/165
Online Access:Full text available on IMF
LEADER 01756cas a2200241 a 4500
001 AALejournalIMF007824
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781451858044 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Konuki, Tetsuya. 
245 1 4 |a The Effects of Monetary and Fiscal Policy on Aggregate Demand in a Small Open Economy :   |b An Application of the Structural Error Correction Model /  |c Tetsuya Konuki. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2000. 
300 |a 1 online resource (24 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 This paper empirically analyzes the short-run effects of monetary and fiscal policy on aggregate demand, using the two-step structural error correction method. This method has an advantage over the standard reduced-form error correction method in providing a meaningful interpretation for impulse responses. The results are in sharp contrast to those of the traditional Mundell-Fleming and Dornbusch models: after the monetary (fiscal) policy is relaxed, the home currency depreciates (appreciates) for a substantial period of time, and the aggregate demand first expands (contracts) then gradually returns toward its original path. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2000/165 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2000/165/001.2000.issue-165-en.xml  |z IMF e-Library