2021
DOI: 10.18488/journal.aefr.2021.111.57.77
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Internal and External Shocks and Economic Policy Innovations in Bolivia: A General Approach

Abstract: This paper contributes to quantifying the severity of various types of shocks for one small open economy. The role of fiscal policy was evaluated along with monetary and exchange rate innovations and the findings reflect the relevance of domestic and external shocks. These estimates show that productivity shocks explain about 90% of real variables in the economy. Regarding external shocks, the presence of oil perturbance affects approximately one-third of the fiscal balance behavior. Finally, the main instrume… Show more

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