Trade Flows and Fiscal Multipliers

• 成果类型: Article
• 署名作者: Cacciatore, Matteo; Traum, Nora
• 署名单位: Universite de Montreal; HEC Montreal; Bank of Canada; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00985
• 发表日期: 2022-11
• 页码: 1206-1223
• 关键词: real exchange-rate; monetary; POLICY; stimulus; MODEL

摘要

We present novel insights on the role of international trade following unanticipated fiscal changes in a flexible exchange rate environment. We show analytically that fiscal multipliers can be larger in economies more open to trade, even when fiscal expansions imply trade deficits. Three factors determine how trade linkages matter: the relative import share of public and private goods, the financing of government debt, and the currency invoicing of exports. A Bayesian prior-predictive analysis shows that a quantitative model bears the same predictions. Conditioning on Canadian and U.S. data, we find support for larger multipliers relative to a counterfactually closed economy.