Keynesian, Non-Keynesian or No Effects of Fiscal Policy Changes? The EMU Case
AbstractThis paper studies the experiences with fiscal adjustments in the EuropeanUnion (EU) countries during the transition period to the Economic andMonetary Union (EMU). Using several approaches suggested in the literatureon fiscal adjustments and their macroeconomic effects and in the literatureon EMU, we analyze the effects of the fiscal adjustments during this periodon private consumption. Thereby, we also take the specific context of thetransition towards EMU explicitly into consideration. At best mixed evidencefor the presence of non-linearities in the relation between fiscal adjustmentsand private spending is obtained. There is no clear-cut evidence for thehypothesis of “expansionary fiscal contractions” which may have alleviatedthe burden from fiscal consolidation in the EMU case. The sensitivity of theresults for a number of factors is also checked.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 570.
Date of creation: 2001
Date of revision:
Fiscal Retrenchment; EMU.;
Other versions of this item:
- van Aarle, Bas & Garretsen, Harry, 2003. "Keynesian, non-Keynesian or no effects of fiscal policy changes? The EMU case," Journal of Macroeconomics, Elsevier, vol. 25(2), pages 213-240, June.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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