<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

Is Currency Appreciation or Depreciation Expansionary in Kosovo?

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Is Currency Appreciation or Depreciation Expansionary in Kosovo?"}

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...

Is Currency Appreciation or Depreciation Expansionary in Kosovo?

Published Online: Jun 13, 2019

Page range: 47 - 54

DOI: https://doi.org/10.2478/zireb-2019-0011

Keywords
Real depreciation or appreciation, Budget deficits, Interest rates, Oil prices

© 2019 Yu Hsing, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Is Currency Appreciation or Depreciation Expansionary in Kosovo?

Published Online: Jun 13, 2019

Page range: 47 - 54

DOI: https://doi.org/10.2478/zireb-2019-0011

KeywordsReal depreciation or appreciation, Budget deficits, Interest rates, Oil prices

© 2019 Yu Hsing, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Real depreciation or appreciation, Budget deficits, Interest rates, Oil prices