The Role of Private Financial Wealth in a Portfolio Model: A Study of the Effects of Fiscal Deficits on the Real Exchange Rate

The Role of Private Financial Wealth in a Portfolio Model: A Study of the Effects of Fiscal Deficits on the Real Exchange Rate by Angel Calderon-Madrid

Title: The Role of Private Financial Wealth in a Portfolio Model: A Study of the Effects of Fiscal Deficits on the Real Exchange Rate
Author: Angel Calderon-Madrid
ISBN10: 0333622073
ISBN13: 978-0333622070
Publisher: Palgrave Macmillan (June 1995)
Language: English
Subcategory: Politics & Government
Size PDF: 1679 kb
Size Fb2: 1365 kb
Rating: 4.5/5
Votes: 328
Pages: 144 pages
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The Role of Private Financial Wealth in a Portfolio Model: A Study of the Effects of Fiscal Deficits on the Real Exchange Rate by Angel Calderon-Madrid


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This volume considers the implications for the dynamics of the exchange rate and private rate and private financial wealth, in a model in which fiscal imbalances are allowed to change the level of domestic public indebtedness. The analysis raises the possibility of an initial appreciation followed by a depreciation and a final exchange rate appreciation. It also highlights the importance that adjustments in the stock of privately-held financial assets have for the determination and speed of medium-run effects of shocks to the economy.