Perotti, Roberto - C.E.P.R. Discussion Papers - 2011
(1995) and Alesina and Ardagna (2010) (AAP) show that fiscal consolidations may be expansionary if implemented mainly by … argue that because of the multi-year nature of the large fiscal consolidations, which are precisely the most informative … interest rates. These results cast doubt on at least some versions of the expansionary fiscal consolidations hypothesis, and on …