This paper uses a VAR model to quantify the relative importance of external debt, exchange rates, monetary policy and other selected variables when explaining output fluctuations in Brazil. Using the money market rate as a policy instrument, impulse response functions indicate that shocks to the...

M1, M2, and M3 demands in Mexico are positively influenced by output and stock prices and negatively associated with the saving rate, the U.S. interest rate, and the expected inflation rate. Peso depreciation affects M1 demand negatively and M2 and M3 demands positively. The log-linear form...

According to regression analysis based on the U.S. data, the IS-MP model reveals that expansionary fiscal policy would stimulate the economy and a lower expected inflation rate would increase real output whereas the IS-LM model shows that expansionary fiscal policy is ineffective and that a...