Link to TCD homepageLink to TCD homepage
Link to TARA homepageaghLink to TARA homepageagh
  • Home
  • Submit
  • Login
View Item 
  •   TARA
  • Economic and Social Review
  • Economic and Social Review Archive: Complete Collection 1969-
  • View Item
  •   TARA
  • Economic and Social Review
  • Economic and Social Review Archive: Complete Collection 1969-
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.
Advanced Search

Browse

All of TARA

Academic/Research Units & CollectionsTitlesAuthorsDate of PublicationSubjectsSponsor

This Collection

TitlesAuthorsDate of PublicationSubjectsSponsor

Statistics

View Google Analytics Statistics

Macroeconomic policy in a small open-economy under flexible exchange-rates with bond financing of government deficits

Share this page with addthis.com
Thumbnail
File Type:
PDF
Item Type:
Journal Article
Date:
1980
Author:
Murray, S
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
Download Item:
Link to the full text item v11n41980_5.pdf  (PDF)  172.4Kb
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.
URI:
http://hdl.handle.net/2262/68676
Author: Murray, S
Publisher:
Economic & Social Studies
Type of material:
Journal Article
URI:
http://hdl.handle.net/2262/68676
Collections:
  • The Economic and Social Review, Vol. 11, No. 3, 1980
  • Economic and Social Review Archive: Complete Collection 1969-
Series/Report no:
Economic and Social Review
Vol.11 (Issue 3), 1980
Availability:
Full text available
Keywords:
Economics, Sociology
ISSN:
0012-9984
Show full item record
DSpace software copyright © 2002-2013  Duraspace
Contact Us | Send Feedback
 
DSpace software copyright © 2002-2013  Duraspace
Contact Us | Send Feedback