Fiscal Policy and Exchange Rates
Annicchiarico Barbara
CEIS Working Papers
This paper examines the dynamics of the nominal
exchange rate and fiscal deficits in a continuous time
optimising general equilibrium model with finite horizon.
It is shown that alternative financing modes of
budget deficits imply di erent patterns of adj
Number: 174
Date: Tuesday, October 1, 2002
Revision Date: Tuesday, October 1, 2002