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Fiscal multipliers in non-EMU CEE countries


  • Piotr Krajewski

    (University of Lodz)


The effects of fiscal policy in non-EMU Central and Eastern European counties are analysed in the study. The analysis is based on dynamic stochastic general equilibrium model, which takes into account both optimizing and rule-of-thumb households. Results of the study indicate that the share of rule-of-thumb households has significant impact on government spending multipliers. On one hand, the fiscal multiplier reaches three in Hungary, which is the country with highest share of rule-of-thumb households among non-EMU CEE countries. On the other hand, in the Czech Republic, which is the country with lowest share of rule-of-thumb households, the fiscal multiplier is lower than one. Moreover, the results show that effects of government spending shocks on consumption are very sensitive to the share of rule-of-thumb households.

Suggested Citation

  • Piotr Krajewski, 2016. "Fiscal multipliers in non-EMU CEE countries," Proceedings of International Academic Conferences 5306957, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:iacpro:5306957

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    More about this item


    fiscal multiplier; government spending; rule-of-thumb households;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

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