The limited role of fiscal policy in an open economy
The paper imposes the workings of the labor market on open-economy models of fiscal policy under fixed and under flexible exchange rates. The author then reexamines the conventional conclusion that fiscal policy is fully effective under fixed rates, but is fully offset under floating rates. For this...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2014-01-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11495 |