Coenen, Günter (contributor); Mohr, Matthias (contributor); … - 2008
In this paper, we examine the macroeconomic effects of alternative fiscal consolidation policies in the New Area …., 2007). We model fiscal consolidation as a permanent reduction in the targeted government debt-to-output ratio and analyse … fiscal consolidation has positive long-run effects on key macroeconomic aggregates such as output and consumption, notably …