Grauwe, Paul De; Ji, Yuemei - CESifo - 2015
periods of turmoil, financial markets have tended to impose strong programs of austerity on member countries of the Eurozone …In this paper we provide empirical evidence documenting the nature of the Eurozone’s fragility. We find that during …-induced austerity, as it occurs mainly during periods of recession, has the effect of reducing the power of the automatic stabilizers in …