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http://hdl.handle.net/10419/25557
  
Title:How do fiscal and technology shocks affect real exchange rates? New evidence for the United States PDF Logo
Authors:Enders, Zeno
Müller, Gernot J.
Scholl, Almuth
Issue Date:2008
Series/Report no.:CFS Working Paper 2008/22
Abstract:Using vector autoregressions on U.S. time series relative to an aggregate of industrialized countries, this paper provides new evidence on the dynamic effects of government spending and technology shocks on the real exchange rate and the terms of trade. To achieve identification, we derive robust restrictions on the sign of several impulse responses from a two-country general equilibrium model. We find that both the real exchange rate and the terms of trade whose responses are left unrestricted depreciate in response to expansionary government spending shocks and appreciate in response to positive technology shocks.
Subjects:Real Exchange Rate
Terms of Trade
International Transmission Mechanism
Government Spending Shocks
Technology Shocks
VAR
Sign Restrictions
JEL:F41
F42
E32
Persistent Identifier of the first edition:urn:nbn:de:hebis:30-56955
Document Type:Working Paper
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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