01756cas a2200241 a 4500 AALejournalIMF007824 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858044 1018-5941 BD-DhAAL BD-DhAAL Konuki, Tetsuya. The Effects of Monetary and Fiscal Policy on Aggregate Demand in a Small Open Economy : An Application of the Structural Error Correction Model / Tetsuya Konuki. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper empirically analyzes the short-run effects of monetary and fiscal policy on aggregate demand, using the two-step structural error correction method. This method has an advantage over the standard reduced-form error correction method in providing a meaningful interpretation for impulse responses. The results are in sharp contrast to those of the traditional Mundell-Fleming and Dornbusch models: after the monetary (fiscal) policy is relaxed, the home currency depreciates (appreciates) for a substantial period of time, and the aggregate demand first expands (contracts) then gradually returns toward its original path. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/165 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/165/001.2000.issue-165-en.xml IMF e-Library