@techreport{NBERw1255,
 title = "Real Exchange Rate Effects of Fiscal Policy",
 author = "Jeffrey Sachs and Charles Wyplosz",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "1255",
 year = "1984",
 month = "1984",
 URL = "http://www.nber.org/papers/w1255",
 abstract = {This paper develops a framework for analyzing the effects of fiscal policy on the real exchange rate. The short-run impact of various types of fiscal measures are considered as well as the dynamics of adjustment to long-run steady states. The analysis and related simulations suggest that the effect of fiscal policy changes on the real exchange rate can vary widely and will depend closely on a number of structural features, including the degree of asset substitutability,the composition of government spending, and the initial size of the public debt and net external position.},
}