|
EconStor >
Kavala Institute of Technology, Greece >
International Journal of Economic Sciences and Applied Research (IJESAR) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/66590
|
| | |
| Title: | | Test of an inverted J-shape hypothesis between the expected real exchange rate and real output: The case of Ireland  |
| Authors: | | Hsing, Yu |
| Issue Date: | | 2010 |
| Citation: | | [Journal:] International Journal of Economic Sciences and Applied Research [ISSN:] 1791-3373 [Volume:] 3 [Year:] 2010 [Issue:] 1 [Pages:] 39-47 |
| Abstract: | | Applying an open-economy macroeconomic model, incorporating the monetary policy reaction function and uncovering interest parity, this paper finds that the expected real exchange rate and real output exhibit an inverted J-shape relationship, suggesting that expected real depreciation increases real output during 1999.Q2-2001.Q3 whereas expected real appreciation raises output during 2001.Q4-2009.Q1. Other findings show that a higher real financial stock price, a higher world real interest rate, or a lower expected inflation rate would increase real output. Fiscal prudence may be needed as the coefficient of the government borrowing/GDP ratio is insignificant at the 10% level. |
| Subjects: | | expected real depreciation or appreciation monetary policy reaction function fiscal policy financial stock price uncovered interest parity |
| JEL: | | E52 F31 F41 O52 |
| Document Type: | | Article |
| Appears in Collections: | | International Journal of Economic Sciences and Applied Research (IJESAR)
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/66590
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|