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Is Real Depreciation Expansionary? The Case Of The Slovak Republic

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  • HSING, Yu

Abstract

Applying aggregate demand/aggregate supply analysis and based on a quarterly sample during 2004.Q1 – 2015.Q4, this paper finds that Slovakia’s aggregate output is positively associated with real appreciation of the euro, the real stock price and percent change in labor productivity and negatively influenced by the real lending rate, the real oil price, percent change in labor cost and the expected inflation rate. In addition, real GDP and government debt as a percent of GDP have a negative relationship during 2004.Q1 – 2009.Q2 and a positive relationship during 2009.Q3 – 2015.Q4.

Suggested Citation

  • HSING, Yu, 2016. "Is Real Depreciation Expansionary? The Case Of The Slovak Republic," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(2), pages 55-62.
    • Handle: RePEc:eaa:aeinde:v:16:y:2016:i:2_4
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    More about this item

    Keywords

    Exchange rates; Government debt; Stock prices; Productivity; Labor cost.;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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