Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25557 
Year of Publication: 
2008
Series/Report no.: 
CFS Working Paper No. 2008/22
Publisher: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
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: 
Document Type: 
Working Paper

Files in This Item:
File
Size
722.99 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.