000			01787nam a22002657a 4500
003			ZW-GwMSU
005			20201217081252.0
008			201217b ||||| |||| 00| 0 eng d
022			_a17487870
040			_aMSU _cMSU _erda
050			_aHD1918
100			_aMakin, Anthony J. _eauthor
245			_aThe policy (in)effectiveness of government spending in a dependent economy _ccreated by Anthony J. Makin
264			_aOxfordshire _bTaylor and Francis _c2013
336			_2rdacontent _atext _btxt
337			_2rdamedia _aunmediated _bn
338			_2rdacarrier _avolume _bnc
440			_aJournal of Economic Policy Reform _vVolume 16, number 3,
520			_aThis paper analyses the policy effectiveness of government spending in a two-sector open economy whose output and expenditure is comprised of tradables and non-tradables. This framework reveals that government spending on either tradables or, more normally, on non-tradables widens the external deficit, yet how the real exchange rate behaves depends, in the first instance, on in which sector the public spending occurs. It also shows that, irrespective of where government spending falls, there appears to be no significant short run boost to overall output and hence employment a priori, although empirically actual impact would depend on the elasticities of tradable and non-tradable output with respect to the real exchange rate. Furthermore, fiscal stimulus is shown to be unambiguously ineffective if deemed unsustainable by foreign lenders, or implemented under a fixed exchange rate regime with limited capital mobility.
650			_aGovernment spending
650			_aDependent economy
650			_aPolicy effectiveness
856			_uhttp://dx.doi.org/10.1080/17487870.2013.812937
942			_2lcc _cJA
999			_c156026 _d156026