Public spending: does it stabilize or reinforce an economic cycle? ; Gasto público: ¿estabiliza o refuerza un ciclo económico?

In this paper, and in line with Pieschacón (2001), we analyze the role of fiscal policy and how its actions may soften or exacerbate the effects of a price shock on exported goods, being able to evidence characteristics and effects of a Dutch disease. In this way, it will be possible to determine whether the countries behave in a cyclical, countercyclical or acyclical way, as in the work of Kaminsky, Reinhart and Végh (2004). We will also use as a guide the work of Fornero, Kirchner and Yany (2014), who study the effects of shocks in commodity prices within small exporting economies. For this,... Mehr ...