@article{Ojeda-Joya:294974,
      recid = {294974},
      author = {Ojeda-Joya, Jair N. and Guzman, Oscar E.},
      title = {The size of fiscal multipliers and the stance of monetary  policy in developing economies},
      publisher = {The Graduate Institute of International and Development  Studies, International Economics Department},
      address = {Geneva. 2017},
      number = {BOOK},
      series = {Graduate Institute of International and Development  Studies Working Paper ; no. 08/2017},
      pages = {23 p. : ill.},
      year = {2017},
      abstract = {In this paper we estimate the effect of government  consumption shocks on GDP using a panel of 21 developing  economies. Our goal is to better understand the reasons for  the low fiscal multipliers found in the literature by  performing estimations for alternative exchange rate  regimes, business-cycle phases, and monetary policy  stances. In addition, we perform counterfactual simulations  to analyze the possible gains from fiscal-monetary policy  coordination. The results imply that government consumption  shocks are usually followed by monetary policy tightening  in developing economies with flexible regimes. Our  simulations show that this reaction partially explains the  presence of low fiscal multipliers in these economies. On  the other hand, we find that government consumption shocks  have better multipliers in developing economies during  fixed regimes, economic booms and monetary expansions. In  particular, implementing fiscal programs during monetary  expansions seems to improve significantly their economic  stimulus.},
      url = {http://repository.graduateinstitute.ch/record/294974},
      doi = {https://doi.org/10.71609/iheid-v1xs-p884},
}