The Effects of Monetary and Fiscal Policy on Aggregate Demand in a Small Open Economy : An Application of the Structural Error Correction Model »
Series: IMF Working Papers
Author(s): Tetsuya Konuki
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2000
Keywords: Monetary and fiscal policy, structural error correction models, equation, aggregate demand, equations, cointegration
This paper empirically analyzes the short-run effects of monetary and fiscal policy on aggregate demand, using the two-step structural error correction method. This method has an advantage over the standard reduced...