Larch, Martin; Orseau, Eloïse; van der Wielen, Wouter - 2020
. The commonly accepted reasons are political economy and uncertainty. In the EU, the pro-cyclical nature of discretionary … scope for stabilising output. Using panel data covering close to 40 EU and non-EU countries, we provide evidence that the …Rather than stabilising aggregate demand, discretionary fiscal policy tends to amplify cyclical fluctuations of output …