Can I read Fiscal Shocks and Exchange Rates in EMU on EtoBox?

Fiscal Shocks and Exchange Rates in EMU by Amit Rai is a document available to read on EtoBox.

What is Fiscal Shocks and Exchange Rates in EMU about?

Government spending shocks in the Euro Area lead to appreciation of the real effective exchange rate (REER) and higher budget and trade deficits, supporting the "twin deficits" hypothesis. In contrast, similar shocks in the US lead to depreciation of the REER. This difference is attributed to three factors in the US: its leading role in the global business cycle, the US dollar

Author

Amit Rai

Language

EN