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Fiscal Multipliers and Their Relevance in a Currency Union – A Survey

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  • Gerhard Illing
  • Sebastian Watzka

Abstract

type="main" xml:id="geer12027-abs-0001"> The article reviews the debate on government spending multiplier and provides a detailed discussion of the underlying economic mechanisms, focusing on the role of the state of the business cycle and the monetary policy reaction. Special emphasis is on the effects of fiscal policy within a currency union and its implications for the euro crisis.

Suggested Citation

  • Gerhard Illing & Sebastian Watzka, 2014. "Fiscal Multipliers and Their Relevance in a Currency Union – A Survey," German Economic Review, Verein für Socialpolitik, vol. 15(2), pages 259-271, May.
    • Handle: RePEc:bla:germec:v:15:y:2014:i:2:p:259-271
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    File URL: http://hdl.handle.net/10.1111/geer.2014.15.issue-2
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    Cited by:

    1. Berg Tim Oliver, 2015. "Time Varying Fiscal Multipliers in Germany," Review of Economics, De Gruyter, vol. 66(1), pages 13-46, April.
    2. Berg, Tim Oliver, 2019. "Business Uncertainty And The Effectiveness Of Fiscal Policy In Germany," Macroeconomic Dynamics, Cambridge University Press, vol. 23(4), pages 1442-1470, June.
    3. Oliver Landmann, 2018. "On the Logic of Fiscal Policy Coordination in a Monetary Union," Open Economies Review, Springer, vol. 29(1), pages 69-87, February.
    4. Müller Gernot J., 2014. "Fiscal Austerity and the Multiplier in Times of Crisis," German Economic Review, De Gruyter, vol. 15(2), pages 243-258, May.
    5. Holtemöller, Oliver & Brautzsch, Hans-Ulrich & Drechsel, Katja & Drygalla, Andrej & Giesen, Sebastian & Hennecke, Peter & Kiesel, Konstantin & Loose, Brigitte & Meier, Carsten-Patrick & Zeddies, Götz, 2015. "Ökonomische Wirksamkeit der Konjunktur stützenden finanzpolitischen Maßnahmen der Jahre 2008 und 2009. Forschungsvorhaben im Auftrag des Bundesministeriums der Finanzen," IWH Online 4/2015, Halle Institute for Economic Research (IWH).
    6. Mariolis, Theodore & Soklis, George, 2014. "The Sraffian Multiplier for the Greek Economy: Evidence from the Supply and Use Table for the Year 2010," MPRA Paper 60253, University Library of Munich, Germany.
    7. Kurt Kratena & Mark Sommer, 2014. "Labour Market Policy and Environmental Fiscal Devaluation: A Cure for Spain in the Aftermath of the Great Recession?," WIFO Working Papers 476, WIFO.

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