Corsetti, Giancarlo; Kuester, Keith; Müller, Gernot J. - In: Journal Economía Chilena (The Chilean Economy) 14 (2011) 2, pp. 5-38
According to conventional wisdom, fiscal policy is more effective under a fixed exchange rate regime than under a flexible one. In this paper we reconsider the transmission of shocks to government spending across these regimes within a standard new-Keynesian model of a small open economy....
