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Analysis of Output Fluctuations in Taiwan: An Application of the IS–MP–AS Model

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  • Yu Hsing

Abstract

Extending the IS–MP–AS model, this paper finds that real GDP in Taiwan is positively affected by real depreciation and stock values and negatively associated with the government deficit/GDP ratio, the U.S. federal funds rate, and the expected inflation rate. Therefore, current large and rising government deficits, recent appreciation of the New Taiwan dollar, and gradual increases in the federal funds rate would hurt real output in Taiwan. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Yu Hsing, 2006. "Analysis of Output Fluctuations in Taiwan: An Application of the IS–MP–AS Model," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(2), pages 203-211, May.
    • Handle: RePEc:kap:iaecre:v:12:y:2006:i:2:p:203-211:10.1007/s11294-006-9004-8
    DOI: 10.1007/s11294-006-9004-8
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    1. Tsangyao Chang & WentRong Liu & Michael Thompson, 2002. "The Viability of Fiscal Policy in South Korea, Taiwan, and Thailand," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0209, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Chang, Koying & Filer, Larry & Ying, Yung-Hsiang, 2002. "A structural decomposition of business cycles in Taiwan," China Economic Review, Elsevier, vol. 13(1), pages 53-64.
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    Cited by:

    1. Afia Malik, 2010. "Oil Prices and Economic Activity in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(2), pages 223-244, September.

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    More about this item

    Keywords

    E52; E62; F41;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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