Intertemporal Budget Policies and Macroeconomic Adjustment in a Small Open Economy

Fisher, Walter H. and Bianconi, Marcelo (February 2001) Intertemporal Budget Policies and Macroeconomic Adjustment in a Small Open Economy. IHS Economics Series 96

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Abstract or Table of Contents

Abstract: This paper analyzes the role of nominal assets in ranking intertemporal budget policies in a growing open economy. The budget policies are ranked in terms of the public's intertemporal stock of tax liabilities. Our main result is that, in a small open economy, the valuation of private and public assets is in terms of the exogenous foreign price level under purchasing power parity. This constraint limits the scope of government to influence the real value of assets using fiscal and monetary policy shocks.;

Item Type: IHS Series
Keywords: 'Government budget' 'Taxation' 'Nominal assets' 'Current account'
Classification Codes (e.g. JEL): E5, E6, F4
Status: Published
Date Deposited: 26 Sep 2014 10:37
Last Modified: 16 Jul 2017 05:16
URI: http://irihs.ihs.ac.at/id/eprint/1326

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