000294974 001__ 294974 000294974 005__ 20250213113211.0 000294974 0247_ $$2doi$$a10.71609/iheid-v1xs-p884 000294974 037__ $$aBOOK 000294974 245__ $$aThe size of fiscal multipliers and the stance of monetary policy in developing economies 000294974 260__ $$aGeneva$$bThe Graduate Institute of International and Development Studies, International Economics Department$$c2017 000294974 269__ $$a2017 000294974 300__ $$a23 p. : ill. 000294974 336__ $$aPapers and Reports 000294974 490__ $$aGraduate Institute of International and Development Studies Working Paper ; no. 08/2017 000294974 520__ $$aIn 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. 000294974 700__ $$aOjeda-Joya, Jair N. 000294974 700__ $$aGuzman, Oscar E. 000294974 8564_ $$970421573-3d2b-40b3-99e4-73ea4846aadb$$s1902173$$uhttps://repository.graduateinstitute.ch/record/294974/files/heidwp08-2017_2.pdf 000294974 901__ $$uInternational Economics Department$$0319285 000294974 909CO $$ooai:repository.graduateinstitute.ch:294974$$pGLOBAL_SET$$pIHEID:Explore 000294974 937__ $$aWP-2017-068 000294974 980__ $$aWP