Larch, Martin; Orseau, Eloïse; Van der Wielan, Wouter - 2020
Rather than stabilising aggregate demand, discretionary fiscal policy tends to amplify cyclical fluctuations of output … fiscal policy has also been associated with the commonly agreed fiscal rules, which, for some observers, unduly limit the … debt foster pro-cyclical fiscal policy. Lawmakers can run discretionary fiscal policy measures based on political economy …