Can fiscal consolidations be expansionary in the EU? Ex-post evidence and ex-ante analysis
This paper analyses non-Keynesian effects in fiscal consolidations in the EU. The analysis is carried out bothÂ ex-post, i.e. by looking at the emergence of expansionary consolidations in the past and at their characteristics, and ex-ante, i.e. by simulating with the European Commission QUEST model under which conditions public finance consolidation would exhibit non-Keynesian effects in the current EMU context.
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