Series: IMF Working Papers
Author(s): Wenyi Shen , Susan Yang , and Luis-Felipe Zanna
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 30 December 2015
Keywords: Fiscal Policy, Low-income Countries, Public Investment, Fiscal Multipliers, Small Open DSGE Models, Aid, investment, government spending, exchange rate, exchange
Despite the voluminous literature on fiscal policy, very few papers focus on low-income countries (LICs). This paper develops a new-Keynesian small open economy model to show, analytically and through simulations,...