Is Currency Appreciation or Depreciation Expansionary in Kosovo?

Yu Hsing

doi:10.2478/zireb-2019-0011

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Is Currency Appreciation or Depreciation Expansionary in Kosovo?

Zagreb International Review of Economics and Business

Volume 22 (2019): Issue 1 (May 2019)

By: Yu Hsing

Open Access

|Jun 2019

Abstract

Applying an extended IS-MP-AS model (Romer, 2000), this paper shows that real depreciation of the euro raises real GDP in Kosovo and that a lower real lending rate in the euro area, a higher real GDP in Germany, a lower real oil price, or a lower expected inflation rate would help increase real GDP. More government deficit spending as a percent of GDP does not affect real GDP.

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Articles in this issue

DOI: https://doi.org/10.2478/zireb-2019-0011 | Journal eISSN: 1849-1162 | Journal ISSN: 1331-5609

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Language: English

Page range: 47 - 54

Published on: Jun 13, 2019

Published by: University of Zagreb, Faculty of Economics & Business

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

Keywords:

Real depreciation or appreciation,

Budget deficits,

Interest rates,

Oil prices

Related subjects:

Business and economics,

Political economics,

Macroeconomics,

Public finance and fiscal theory,

Business management,

Marketing, sales, customer relations,

Management, organization, corporate governance

© 2019 Yu Hsing, published by University of Zagreb, Faculty of Economics & Business
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 22 (2019): Issue 1 (May 2019)