Re: DSE 2007-paper Discussion

Posted by kangkan on Jun 10, 2014; 4:24pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2007-paper-Discussion-tp7591092p7592295.html

@40

for a flexible exchange rate and capital mobility, a lump sum tax increase will shift the IS curve to the left....capital outflow will lead to currency depreciation till the IS curve is back at the starting point..you can refer to donbausch for this