Umfang:
1 Online-Ressource (15 pages)
Serie:
Spillover Notes
Inhalt:
This note analyzes the impact of preannounced government spending shocks in the United States on the real effective exchange rate and the trade balance. Using a vector autoregression framework that allows anticipated fiscal shocks to be identified using survey information, we find that preannounced spending shocks lead to a sizable real effective dollar appreciation and a worsening of both the aggregate trade balance and bilateral trade balances in a panel of partner countries. The results are robust to controlling for country-specific variables like the macroeconomic and policy conditions in the recipient countries, are generalized across regions and might have decreased during the zero-interest-lower-bound regime
Weitere Ausg.:
Erscheint auch als Druck-Ausgabe Popescu, Adina Spillovers from US Government Spending Shocks: Impact on External Positions Washington, D.C. : International Monetary Fund, 2021 ISBN 9781484320259
Sprache:
Englisch
DOI:
10.5089/9781484320259.062
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