Wu, Jyh-Lin - In: Open Economies Review 5 (1994) 2, pp. 177-190
This paper examines the dynamic impact of anticipated government spending on real exchange rates in a general …-equilibrium framework. I show that an increase in government spending causes persistent movements in real exchange rates, and that the time … profile of real exchange rates differs with patterns of government spending. Hence, one of the explanations for the …