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Original Articles

The IMF fiscal impulses and the determination of the real exchange rate of the Spanish peseta

Pages 235-240 | Published online: 06 Oct 2010
 

Abstract

In this paper a Keynesian model is applied for real exchange rate determination based on the concept of fiscal impulses. This model was proposed by Obstfeld (1985) and studies the effect of relative demand shocks on the real exchange rate.

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