dc.contributor.author | Murray, S | |
dc.date.accessioned | 2014-04-23T12:28:46Z | |
dc.date.available | 2014-04-23T12:28:46Z | |
dc.date.issued | 1980 | |
dc.identifier.citation | S Murray, 'Macroeconomic policy in a small open-economy under flexible exchange-rates with bond financing of government deficits', Economic and Social Research Institute, Economic and Social Review, Vol.11 (Issue 3), 1980, 1980, pp237-256 | |
dc.identifier.issn | 0012-9984 | |
dc.description.abstract | This paper presents a dynamic macroeconomic model of a small open economy (SOE) under flexible exchange rates in which the government offsets its budget imbalances by sales or purchases of its own bonds, the dynamics arising from a stock-adjustment approach to capital movements and from the government's budget constraint. Stability conditions and the medium-run policy multipliers are derived. It is shown that government spending has no effect on income in the medium run but raises income in the short run. Thus, a government wishing to raise income permanently by fiscal policy must absorb an ever-increasing share of output. Monetary policy raises output in the medium run. It is shown that bond financing of government deficits is inherently destabilising in an SOE, producing at best a quasi-steady-state in which the aggregate assets stocks are constant but the composition of the bond stock is changing secularly. | |
dc.language.iso | en | |
dc.publisher | Economic & Social Studies | |
dc.relation.ispartofseries | Economic and Social Review | |
dc.relation.ispartofseries | Vol.11 (Issue 3), 1980 | |
dc.subject | Economics | |
dc.subject | Sociology | |
dc.title | Macroeconomic policy in a small open-economy under flexible exchange-rates with bond financing of government deficits | |
dc.type | Journal Article | |
dc.status.refereed | Yes | |
dc.publisher.place | DUBLIN | |
dc.format.extentpagination | pp237-256 | |
dc.identifier.uri | http://hdl.handle.net/2262/68676 | |