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Notes
- 1.
Their work differs from that of Ball et al. (1988) and Carlino and DeFina (1999) by allowing for the differential effects of monetary policy and government spending. They test the new Keynesian proposition that sticky prices increase the effects of government spending and monetary policy on GNP. They found little evidence of the new Keynesian sticky price model.
- 2.
This approach differs from Ball et al. (1988) and other studies that use cross-country analysis.
References
Ball, L., Mankiw, N. G., & Romer, D. (1988). The new Keynesian economics and the output-inflation trade-off. Brookings Papers on Economic Activity, 1, 1–65.
Carlino, G., & DeFina, R. H. (1999). Do states respond differently to changes in monetary policy? Business Review, 2, 17–27.
Hlatshwayo, S., & Saxegaard, M. (2016). The consequences of policy uncertainty: Disconnects and dilutions in the South African real effective exchange rate-export relationship (IMF working paper WP/16/113).
Koelln, K., Rush, M., & Walso, D. (1996). Do government policy multipliers decrease with inflation? Journal of Monetary Economics, 38, 495–505.
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Gumata, N., Ndou, E. (2017). Does Inflation Neutralise the Multiplier Effects of Expansionary Monetary and Fiscal Policy on GDP Growth?. In: Labour Market and Fiscal Policy Adjustments to Shocks. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-66520-7_40
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