Are stabilization programs expansionary?

  • Federico Echenique Universidad de la República de Uruguay - University of California at Berkeley
  • Alvaro Forteza Universidad de la República de Uruguay
Keywords: positive external shocks, stabilization programs

Abstract

The empirical evidence presented in this paper casts doubts on the by now widely accepted “fact” that exchange rate based stabilization programs are expansionary. Even though these programs were associated with output booms, no evidence was found to support the thesis that the booms were caused by the stabilization programs. Rather, positive external shocks seem to have caused both the output booms and the stabilization programs.

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Published
01-01-2000
How to Cite
EcheniqueF., & FortezaA. (2000). Are stabilization programs expansionary?. Estudios Económicos, 15(1), 65-89. https://doi.org/10.24201/ee.v15i1.219
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