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

Author

Listed:
  • Illing Gerhard
  • Watzka Sebastian

    (LMU University of Munich, Munich, Bavaria, Germany)

Abstract

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

  • Illing Gerhard & Watzka Sebastian, 2014. "Fiscal Multipliers and Their Relevance in a Currency Union – A Survey," German Economic Review, De Gruyter, vol. 15(2), pages 259-271, May.
    • Handle: RePEc:bpj:germec:v:15:y:2014:i:2:p:259-271
    DOI: 10.1111/geer.12020
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