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Is Real Appreciation or More Government Debt Contractionary? The Case of the Philippines

East Asian Journal of Business Economics / East Asian Journal of Business Economics, (E)2288-2766
2016, v.4 no.4, pp.1-7
https://doi.org/10.20498/eajbe.2016.4.4.1
Yu Hsing (Southeastern Louisiana University)
Yun-Chen Morgan (Southeastern Louisiana University)

Abstract

This paper finds that aggregate output in the Philippines has a positive relationship with real appreciation during 2006.Q4 - 2016.Q1, the stock price and the lagged real oil price and a negative relationship with real appreciation during 1998.Q1 - 2006.Q3, government debt as a percent of GDP and the real interest rate. Therefore, real appreciation may be contractionary or expansionary, and more government debt as a percent of GDP dampens economic growth.

keywords
exchange rates, government debt, oil prices, stock prices, interest rates

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East Asian Journal of Business Economics