Is real depreciation and expansionary fiscal policy effective? The case of Serbia

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Yu Hsing Yun Chen Morgan


Applying the IS-MP-IA model to study the impacts of exchange rate movements, expansionary fiscal policy and other relevant variables in Serbia, we find that real appreciation of the dinar, a higher government deficit-to-GDP ratio, a lower real lending rate in the euro area, a lower lagged real oil price, a higher Germany’s real GDP and a lower expected inflation rate would promote economic growth.

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HSING, Yu; MORGAN, Yun Chen. Is real depreciation and expansionary fiscal policy effective? The case of Serbia. Economics, Management and Sustainability, [S.l.], v. 2, n. 2, p. 24-30, dec. 2017. ISSN 2520-6303. Available at: <>. Date accessed: 22 jan. 2018. doi:


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