Artikel
Test of an inverted J-shape hypothesis between the expected real exchange rate and real output: The case of Ireland
Applying an open-economy macroeconomic model, incorporating the monetary policy reaction function and uncovering interest parity, this paper finds that the expected real exchange rate and real output exhibit an inverted J-shape relationship, suggesting that expected real depreciation increases real output during 1999.Q2-2001.Q3 whereas expected real appreciation raises output during 2001.Q4-2009.Q1. Other findings show that a higher real financial stock price, a higher world real interest rate, or a lower expected inflation rate would increase real output. Fiscal prudence may be needed as the coefficient of the government borrowing/GDP ratio is insignificant at the 10% level.
- Language
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Englisch
- Bibliographic citation
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Journal: International Journal of Economic Sciences and Applied Research ; ISSN: 1791-3373 ; Volume: 3 ; Year: 2010 ; Issue: 1 ; Pages: 39-47 ; Kavala: Kavala Institute of Technology
- Classification
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Wirtschaft
Monetary Policy
Foreign Exchange
Open Economy Macroeconomics
Economywide Country Studies: Europe
- Subject
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expected real depreciation or appreciation
monetary policy reaction function
fiscal policy
financial stock price
uncovered interest parity
- Event
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Geistige Schöpfung
- (who)
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Hsing, Yu
- Event
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Veröffentlichung
- (who)
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Kavala Institute of Technology
- (where)
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Kavala
- (when)
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2010
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Hsing, Yu
- Kavala Institute of Technology
Time of origin
- 2010
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