Finanspolitik
(2011) NEKK01 20102Department of Economics
- Abstract (Swedish)
- The aim of this essay is to examine whether fiscal policy has any effect on the GDP-gap under fixed- and floating exchange rate. According to the Mundell Fleming-model a fiscal expansion has a positive effect under fixed exchange rate and no effect under floating exchange rate. Sweden among other countries suffers from the financial crisis of 2008. A common response to recessions is to conduct fiscal expansion during bad times. If the theory is valid, such actions will have no effect on the GDP-gap if a country is applying a floating exchange rate regime. The effect of fiscal policy on GDP-gap is examined on four countries, Sweden, Great Britain, Denmark and Germany using multiple regression analysis. The results show that fiscal policy... (More)
- The aim of this essay is to examine whether fiscal policy has any effect on the GDP-gap under fixed- and floating exchange rate. According to the Mundell Fleming-model a fiscal expansion has a positive effect under fixed exchange rate and no effect under floating exchange rate. Sweden among other countries suffers from the financial crisis of 2008. A common response to recessions is to conduct fiscal expansion during bad times. If the theory is valid, such actions will have no effect on the GDP-gap if a country is applying a floating exchange rate regime. The effect of fiscal policy on GDP-gap is examined on four countries, Sweden, Great Britain, Denmark and Germany using multiple regression analysis. The results show that fiscal policy has no- or a negligible effect on the GDP-gap which is contradicting to the Mundell Fleming framework. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1784169
- author
- Hammarbäck, Måns LU and Warnerbring, Martin LU
- supervisor
- organization
- alternative title
- Offentliga utgifters påverkan på BNP
- course
- NEKK01 20102
- year
- 2011
- type
- M2 - Bachelor Degree
- subject
- keywords
- GDP-gap, Budget balance, Fiscal policy, the IS/LM framework and the Mundell Fleming-theory
- language
- Swedish
- id
- 1784169
- date added to LUP
- 2011-02-15 13:36:08
- date last changed
- 2011-02-15 13:36:08
@misc{1784169, abstract = {{The aim of this essay is to examine whether fiscal policy has any effect on the GDP-gap under fixed- and floating exchange rate. According to the Mundell Fleming-model a fiscal expansion has a positive effect under fixed exchange rate and no effect under floating exchange rate. Sweden among other countries suffers from the financial crisis of 2008. A common response to recessions is to conduct fiscal expansion during bad times. If the theory is valid, such actions will have no effect on the GDP-gap if a country is applying a floating exchange rate regime. The effect of fiscal policy on GDP-gap is examined on four countries, Sweden, Great Britain, Denmark and Germany using multiple regression analysis. The results show that fiscal policy has no- or a negligible effect on the GDP-gap which is contradicting to the Mundell Fleming framework.}}, author = {{Hammarbäck, Måns and Warnerbring, Martin}}, language = {{swe}}, note = {{Student Paper}}, title = {{Finanspolitik}}, year = {{2011}}, }