IS REAL DEPRECIATION AND MORE GOVERNMENT SPENDING EXPANSIONARY? THE CASE OF MONTENEGRO
IS REAL DEPRECIATION AND MORE GOVERNMENT SPENDING EXPANSIONARY? THE CASE OF MONTENEGRO
Author(s): Yu HsingSubject(s): National Economy, Economic policy, Government/Political systems, Economic development
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: Currency depreciation; government spending; interest rates; IS-MP-AS model;
Summary/Abstract: Employing an extended IS-MP-AS model to study the effects of the exchange rate, fiscal policy and other related variables in Montenegro, the paper finds that real depreciation of the Euro, a lower government spending-to-GDP ratio, a lower real lending rate in the Euro area, a lower lagged real oil price, a higher lagged real GDP in Germany, and a lower expected inflation rate would promote economic growth.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2017
- Issue No: 20
- Page Range: 103-113
- Page Count: 11
- Language: English
