par Kollmann, Robert 
Référence Open economies review, 21, 1, page (49-64)
Publication Publié, 2010-03
Référence Open economies review, 21, 1, page (49-64)
Publication Publié, 2010-03
Article révisé par les pairs
| Résumé : | Recent empirical research documents that an exogenous rise in government purchases in a given country triggers a persistent depreciation of its real exchange rate-which raises an important puzzle, as standard macro models predict an appreciation of the real exchange rate. This paper presents a simple model with limited international risk sharing that can account for the empirical real exchange rate response. When faced with a country-specific rise in government purchases, local households experience a negative wealth effect; they thus work harder, and domestic output increases. Under balanced trade (financial autarky) this supply-side effect is so strong that the terms of trade worsen, and the real exchange rate depreciates. In a bonds-only economy, an increase in government purchases triggers a real exchange rate depreciation, if the rise in government purchases is sufficiently persistent and/or labor supply is highly elastic. © Springer Science+Business Media, LLC 2009. |
