argue this is the consequence of pursuing procyclical fiscal policies. We add a fiscal rule, which varies public spending …The PIGS countries have suffered economic instability and fiscal havoc in the aftermath of the Financial Crisis. We … with the cycle, to an otherwise standard RBC model of a small open economy. This procyclical reaction of fiscal policy to …

-Lerner condition is met. These results carry over a model with active fiscal policies, and hold within a medium-scale model, although …

particular with respect to their reaction to policy packages. In general, policy-puts (such as QE1, LTRO, fiscal policy, etc … the good states of the recovery (e.g., some aspects of forward guidance) are less powerful. Public debt plays a central … role in SAM as long as the government has spare fiscal capacity to back safe asset production. …

This 2003 Institute for Fiscal Studies Lecture addresses two sets of issues relevant to current and prospective future … E(M)U members: the consequences of the Stability and Growth Pact for fiscal-financial sustainability and macroeconomic … restricted to E(M)U members. Poor communication, cooperation and coordination between the fiscal and monetary authorities can be …

It is commonly believed that higher budget deficits raise interest rates. However, these crowding out effects of … increasing public debt have usually been found to be small or non-existent. One explanation is that on globalised bond markets … public debt on domestic long term interest rates is small: a 1% increase in the debt ratio pushes up domestic rates by 2pp at …

Emerging countries exhibit volatile fiscal policies and frequent sovereign debt crises, that significantly diminish the …

Why did the country that borrowed the most industrialize first? Earlier research has viewed the explosion of debt in 18 …

particular, to changes in taxes. This paper addresses this question by measuring the effects of tax and government spending …Relatively little empirical evidence exists about countries' external adjustment to changes in fiscal policy and, in … on a structural vector autoregression in which the interaction of fiscal variables and macroeconomic aggregates is left …

planned, with a view to reducing the debt burden below 60% of GDP by 2020. Austrian fiscal policies have tended to be pro …-cyclical in upturns, mainly because spending was not adequately kept in check. Stronger fiscal rules and a reform of inter …-governmental fiscal relations could help contain expenditure dynamics. Efficiency-raising reforms in key spending areas such as pensions …