This paper reports the preliminary work under way to analyse the composition of public spending in response to increased economic openness in the advanced industrial societies over recent decades. The compensation hypothesis predicts that public spending will rise in response to greater...

This paper reports the preliminary work under way to analyse the composition of public spending in response to increased economic openness in the advanced industrial societies over recent decades. The compensation hypothesis predicts that public spending will rise in response to greater...

This paper studies the effects of government spending under limited international capital mobility, as featured by most developing countries. While external financing of government debt mitigates the crowding-out effect, it generates real appreciation, which contracts traded output and lowers...

This paper studies the effects of government spending under limited international capital mobility, as featured by most developing countries. While external financing of government debt mitigates the crowding-out effect, it generates real appreciation, which contracts traded output and lowers...

For Matías Vernengo and Esteban Pérez Caldentey (2020), the MMT literature overemphasizes the choice of the exchange rate regime and the relevance of a flexible exchange rate regime, as well as the ultimate effect of that choice upon the policy space. In addition, they argue that the role of...