United States: Background Papers
October 3, 1995
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This Background Paper on the United States examines the effect of fiscal deficit reduction in the context of the IMF’s multicountry simulation model, on the current account and the real exchange rate. The simulations suggest that, other things being equal, fiscal consolidation will tend to cause the real exchange rate to depreciate in the short term. The paper also estimates a long-term relationship between the real effective exchange rate for the U.S. dollar and a number of variables.
Subject: Exchange rates, Flat tax, Foreign exchange, Income, National accounts, Personal income, Real exchange rates, Taxes
Keywords: calendar year basis, CR, credit reform principle, dollar, East Asia, Eastern Europe, exchange rate volatility, Exchange rates, Flat tax, Global, Income, inflation-output tradeoff, ISCR, North America, OECD DAC, Personal income, Real exchange rates, South America, South Asia
Pages:
198
Volume:
1995
DOI:
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Issue:
094
Series:
Country Report No. 1995/094
Stock No:
1USAEA0011995
ISBN:
9781451839470
ISSN:
1934-7685
Notes
These background papers on the United States were prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.
