The paper uses a small open economy general-equilibrium model to compare fiscal and nominal exchange rate devaluation … fiscal devaluation mimics nominal exchange rate adjustment and mitigates the output loss associated with demand rebalancing … tax shift from labour to consump-tion as standard example of fiscal devaluation remains moderate, however. …

the euro periphery fiscal devaluation programs, and show that it can account for the most salient features of the data … recent euro periphery crisis. Trade costs can limit the pass-through of internal devaluation on export prices. Using data on … relative to domestic prices in the euro periphery. Furthermore, VAT (in theory trade neutral, but in practice much higher on …

The paper uses a small open economy general equilibrium model to compare fiscal and nominal exchange rate devaluation … fiscal devaluation mimics nominal exchange rate adjustment and mitigates the output loss associated with demand rebalancing … tax shift from labour to consumption as standard example of fiscal devaluation remains moderate, however …

devaluations. There are two types of fiscal policies equivalent to an exchange rate devaluation-one, a uniform increase in import …We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can … robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open …

We study fiscal devaluation in a small-open economy with labor market search frictions. Our analysis shows the key role …-improving. Yet, as it makes imports more expensive, fiscal devaluation lowers the agents' purchasing power, which is welfare … magnitude of fiscal devaluation …

devaluations. There are two types of fiscal policies equivalent to an exchange rate devaluation: one, a uniform increase in the …The authors show that even when the exchange rate cannot be devalued, a small set of conventional fiscal policy … instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a standard New …