Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Finanspolitik

Hammarbäck, Måns LU and Warnerbring, Martin LU (2011) NEKK01 20102
Department 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:
author
Hammarbäck, Måns LU and Warnerbring, Martin LU
supervisor
organization
alternative title
Offentliga utgifters påverkan på BNP
course
NEKK01 20102
year
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}},
}