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dc.contributor.authorAizenman, Joshuaen_US
dc.contributor.authorJinjarak, Yothinen_US
dc.date.accessioned2011-09-02en_US
dc.date.accessioned2012-09-28T12:41:52Z-
dc.date.available2012-09-28T12:41:52Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/64530-
dc.description.abstractThis paper studies the cross-country variation of the fiscal stimulus and the exchange rate adjustment propagated by the global crisis of 2008-9, identifying the role of economic structure in accounting for the heterogeneity of response. We find that greater de facto fiscal space prior to the global crisis and lower trade openness were associated with a higher fiscal stimulus/GDP during 2009-2010 (where the de facto fiscal space is the inverse of the average tax-years it would take to repay the public debt). Lowering the 2006 public debt/average tax base from the level of low-income countries (5.94) down to the average level of the Euro minus the Euro-area peripheral countries (1.97), was associated with a larger crisis stimulus in 2009-11 of 2.78 GDP percentage points. Joint estimation of fiscal stimuli and exchange rate depreciations indicates that higher trade openness was associated with a smaller fiscal stimulus and a higher depreciation rate during the crisis. Overall, the results are in line with the predictions of the neo-Keynesian open-economy model.en_US
dc.language.isoengen_US
dc.publisherUniv. of California at Santa Cruz, Dep. of Economics Santa Cruz, Calif.en_US
dc.relation.ispartofseriesWorking Papers, UC Santa Cruz Economics Department 688en_US
dc.subject.jelE62en_US
dc.subject.jelF42en_US
dc.subject.jelO23en_US
dc.subject.ddc330en_US
dc.subject.keywordfiscal spaceen_US
dc.subject.keywordfiscal stimulusen_US
dc.subject.keywordtrade opennessen_US
dc.subject.stwFinanzmarktkriseen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwGlobalsteuerungen_US
dc.subject.stwWechselkurspolitiken_US
dc.subject.stwAußenhandelsliberalisierungen_US
dc.subject.stwNeukeynesianische Makroökonomiken_US
dc.subject.stwWelten_US
dc.titleThe fiscal stimulus of 2009-10: Trade openness, fiscal space and exchange rate adjustmenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn667626824en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Economics Department, UC Santa Cruz

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