Interest rates,exchange rates,and aggregate supply |
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| Institution: | 1. Boston College, United States;2. Indiana University Bloomington, United States;3. Harvard University, United States;1. Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (Szabist), Islamabad, Pakistan;2. COMSATS, Virtual Campus, Islamabad, Pakistan |
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| Abstract: | The paper discusses fiscal policy incorporating interest-rate and exchange-rate effects on aggregate supply. It is shown how the familiar aggregate supply-aggregate demand framework can be used in the presence of endogenously determined interest rates and exchange rates. |
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