Malley, Jim; Philippopoulos, Apostolis; Woitek, Ulrich - CESifo - 2007
implications of countercyclical fiscal policy for France, Germany and the UK. The model incorporates real wage rigidity which is … government consumption or investment to react to the output gap or the public debt-to-output ratio. If the object of fiscal … policy is purely to stabilize output or debt volatility, then our results suggest substantial reductions can be obtained …