NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The International Transmission and Effects of Fiscal Policies

Jacob A. Frenkel, Assaf Razin

NBER Working Paper No. 1799 (Also Reprint No. r0771)
Issued in 1986
NBER Program(s):International Trade and Investment, International Finance and Macroeconomics

In recent years the world economy has been subject to large and unsyncronized changes in fiscal policies, high and volatile real rates of tnterest, large fluctuations in real exchange rates, and significant variations in private-sector spending. This paper reviews some of the key facts characterizing the effects of fiscal policies during the first half of the 1980s and provides a simple analytical framework suitable for the interpretation of these facts. The analytical framework builds on a two-country model of the world economy which is applied to the analysis of the transmission and effects of various changes in the time profile of taxes and of government spending. Generally, the predictions of the model concerning the relation among the intercountry patterns of consumption, long and short-term real rates of interest, real exchange rates and fiscal policies are consistent with the stylized facts.

download in pdf format
   (119 K)

download in djvu format
   (96 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w1799

Published:

  • Frenkel, Jacob A. and Assaf Razin. "The International Transmission and Effects of Fiscal Policies," American Economic Review, Vol. 76, no. 2, May 1986, pp. 330-335. citation courtesy of
  • Frenkel, Jacob A. and Assaf Razin. "Real Exchange Rates, Interest Rates, and Fiscal Policies," Economic Studies Quarterly, Vol. 37, No. 2, (June 1986), pp. 99-113.

Users who downloaded this paper also downloaded* these:
Frenkel and Razin w2065 Fiscal Policies and Real Exchange Rates in the World Economy
Frenkel and Razin w1266 Fiscal Policies, Debt, and International Economic Interdependence
Frank and Gaynor w3923 Organizational Failure and Government Transfers: Evidence From an Experiment in the Financing of Mental Health Care
Nadiri and Mamuneas w3887 The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries
Giavazzi and Pagano Can Severe Fiscal Contractions Be Expansionary? Tales of Two Small European Countries
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us