Is real depreciation and expansionary fiscal policy effective? The case of Serbia
Is real depreciation and expansionary fiscal policy effective? The case of Serbia

Summary/Abstract: Applying the IS-MP-IA model to study the impacts of exchange rate movements, expansionary fiscal policy and other relevant variables in Serbia, we find that real appreciation of the dinar, a higher government deficit-to-GDP ratio, a lower real lending rate in the euro area, a lower lagged real oil price, a higher Germany’s real GDP and a lower expected inflation rate would promote economic growth.

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