real exchange rate, according to Keynesian views because it impacts output. Both views have merit because the effects of … government spending are asymmetric. A spending cut lowers output but does not alter the real exchange rate. A spending increase … appreciates the exchange rate but does not alter output unless there is economic slack. We establish these results in a small open …

lagged, hump‑shaped reactions of output, employment and unemployment in each of the analysed countries. …

This paper estimates the output cost of fighting inflation-the sacrifice ratio-for the South African economy using …, which lies within the range 0.00002-0.231 per cent with an average of 0.031 per cent, indicating a low level of output to be … on real variables like output. …