Twin Deficit or Twin Divergence? Fiscal Policy, Current Account, and Real Exchange Rate in the US

By Soyoung Kim, Nouriel Roubini. 2008

556 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/fec050182249ede2478c87948c75b00a739d8a55

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In Economics and Econometrics

Citations in the corpus

Fiscal Policy, the Real Exchange Rate and Traded Goods (2010, unknown): “Our evidence provides support for a traditional twin deficit hypothesis, in stark contrast with a recent study by Kim and Roubini (2008). A second implication concerns the consistency of facts and theory.”
Exchange Rate Regimes and Fiscal Multipliers (2013, background): “Nonfundamentalness (or “non-invertibility”) prevents that the structural shocks can be uncovered from the innovations of an estimated VAR model, as discussed by Lippi and Reichlin (1994) and, more recently, by Fernández-Villaverde, Rubio-Ramı́rez, Sargent, and Watson (2007).5 Leeper, Walker, and Yan”
The Bank of England Quarterly Model (2005, background): “See the survey by Schmitt-Grohé and Uribe (2003) for a comparison.”
What Determines Government Spending Multipliers? (2012, unknown): “Also in contrast to our unconditional findings above, the response of net exports is no longer negative , and hence more in line with the evidence reported for the U.S. by Kim and Roubini (2008).”
Fiscal Stimulus with Spending Reversals (2009, unknown): “Second, the real exchange rate depreciates, a result that has also been found by several other authors, including Kim and Roubini (2008), Monacelli and Perotti (2010), and Ravn, Schmitt-Grohé, and Uribe (2007).”
The Effects of Discretionary Fiscal Policy on Macroeconomic Aggregates: A Reappraisal (2011, unknown): “…Müller (2006) Australia budget balance recursive + + Canada budget balance recursive - - UK budget balance recursive - - USA budget balance recursive - + Kim and Roubini (2008) USA budget balance recursive - + Monacelli and Perotti (forthcoming) Australia government spending Blanchard and…”
Cross-Border Spillovers from Fiscal Stimulus (2009, unknown): “A host of time-series analyses have documented real depreciation in response to fiscal expansion for the United States, the United Kingdom, and Canada; see Kim and Roubini (2008), Monacelli and Perotti (2006), and Ravn, Schmitt-Grohé, and Uribe (2007).”
Government spending shocks in open economy VARs (2014, background): “…that increases in government spending lead, in advanced economies with flexible exchange rates, to a depreciation of the real domestic currency (see Kim and Roubini, 2008, Corsetti and Muller, 2006, Monacelli and Perotti, 2007, Ravn, SchmittGrohe and Uribe, 2007, and Enders, Muller and Scholl,…”
Expansionary Fiscal Shocks and the US Trade Deficit (2005, unknown): “However, the VAR evidence of Kim and Roubini (2003) suggests that fiscal shocks have small effects on the real exchange rate.”