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An Optimum Currency Area In South Asia: Is It Plausible?, Nilanjan Banik, Basudeb Biswas, Peter J. Saunders
An Optimum Currency Area In South Asia: Is It Plausible?, Nilanjan Banik, Basudeb Biswas, Peter J. Saunders
All Faculty Scholarship for the College of Business
This article is an empirical investigation of the potential feasibility of an optimum currency area (OCA) in South Asia. Under an OCA, member countries share a common currency (like the Euro), and forego autonomy with respect to monetary policy instruments. Countries are good candidates for forming an OCA if there is a long-run relationship in the trend (permanent) component of output. Our results indicate existence of such a long-run relationship in the trend component of gross domestic product (GDP) among the member countries in South Asia. Hence, the South Asia region has the potential to form an OCA.
Effectiveness Of Fiscal Policy In The U.K. During The 1960-1990 Time Period, Peter J. Saunders
Effectiveness Of Fiscal Policy In The U.K. During The 1960-1990 Time Period, Peter J. Saunders
All Faculty Scholarship for the College of Business
This study investigates the impact of fiscal policy on the U.K. economy during the 1960 - 1990 time period. The empirical analysis is conducted within the Granger causality testing methodology. Initially the causal flows between fiscal expenditures, deficits and nominal GDP are examined. A hi-directional causal flow between expenditures and nominal GDP is established while deficits and nominal GDP are found to be statistically independent. However, the main contribution of this research lies in its emphasis on analyzing the impact of fiscal expenditures on real output and prices. The results of the trivariate analysis indicate the absence of causal flows …