Series: IMF Working Papers
Author(s): Santanu Chatterjee , and Azer Mursagulov
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2012
Keywords: real exchange rate, intersectoral adjustment costs, exchange rate, government spending, government spending shocks, Macroeconomic Aspects Of International Trade And Finance, National Government Expenditures And Related Policies,
Government spending on infrastructure has recently increased sharply in many emerging-market economies. This paper examines the mechanism through which public infrastructure spending affects the dynamics of the rea...