Is real depreciation or more government deficit expansionary? The case of Macedonia

Is real depreciation or more government deficit expansionary? The case of Macedonia

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The paper finds that real depreciation of the denar reduces real GDP and that more government deficit spending as a percent of GDP raises real GDP.In addition, a lower world real interest rate, a higher lagged 12n/1200 wella world real income, a lower real oil icon track bar f250 price or a lower expected inflation would increase real GDP.It suggests that the negative impact of real depreciation such as higher import costs and domestic inflation and less international capital inflows dominates the positive impact of real depreciation such as more exports.