• myGriffith
    • Staff portal
    • Contact Us⌄
      • Future student enquiries 1800 677 728
      • Current student enquiries 1800 154 055
      • International enquiries +61 7 3735 6425
      • General enquiries 07 3735 7111
      • Online enquiries
      • Staff phonebook
    View Item 
    •   Home
    • Griffith Research Online
    • Conference outputs
    • View Item
    • Home
    • Griffith Research Online
    • Conference outputs
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

  • All of Griffith Research Online
    • Communities & Collections
    • Authors
    • By Issue Date
    • Titles
  • This Collection
    • Authors
    • By Issue Date
    • Titles
  • Statistics

  • Most Popular Items
  • Statistics by Country
  • Most Popular Authors
  • Support

  • Contact us
  • FAQs
  • Admin login

  • Login
  • The Real Exchange Rate, National Income and the Efficacy of Macropolicy

    Author(s)
    Makin, Tony
    Griffith University Author(s)
    Makin, Tony J.
    Year published
    2005
    Metadata
    Show full item record
    Abstract
    This paper yields new results about the effectiveness of fiscal and monetary policy under both fixed and floating exchange rate regimes. Contrary to accepted theory, yet consistent with recent empirical evidence, it predicts that fiscal consolidation in the form of reduced public consumption strengthens the nominal exchange rate and national income. Alternatively, fiscal expansion in the form of productivity enhancing infrastructure spending can generate current account deficits and appreciate the exchange rate while raising national income. It also shows that exchange rate choice becomes less pivotal in determining the ...
    View more >
    This paper yields new results about the effectiveness of fiscal and monetary policy under both fixed and floating exchange rate regimes. Contrary to accepted theory, yet consistent with recent empirical evidence, it predicts that fiscal consolidation in the form of reduced public consumption strengthens the nominal exchange rate and national income. Alternatively, fiscal expansion in the form of productivity enhancing infrastructure spending can generate current account deficits and appreciate the exchange rate while raising national income. It also shows that exchange rate choice becomes less pivotal in determining the impact of fiscal and monetary policies the more immediate is exchange rate passthrough to the domestic price level.
    View less >
    Conference Title
    Proceedings of the Australian Conference of Economists, 2005
    Publisher URI
    https://editorialexpress.com/conference/ACE2005/program/ACE2005.html#36
    Copyright Statement
    © 2005 Economic Society of Australia QLD Inc. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher.
    Publication URI
    http://hdl.handle.net/10072/2773
    Collection
    • Conference outputs

    Footer

    Disclaimer

    • Privacy policy
    • Copyright matters
    • CRICOS Provider - 00233E
    • TEQSA: PRV12076

    Tagline

    • Gold Coast
    • Logan
    • Brisbane - Queensland, Australia
    First Peoples of Australia
    • Aboriginal
    • Torres Strait Islander