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 …

This paper explores the distributional implications of a fiscal devaluation acquired through a shift from labor to …. A permanent fiscal devaluation perfectly mimicking a nominal devaluation in aggregate implies an increase in transfers … provided by higher transfers benefits wealth-poor agents and mitigates the equity concerns associated with fiscal devaluations …