In this paper, we study maximizing long-run economic growth trade-off in monetary and fiscal policies in an endogenous growth model with transaction costs. We show that both monetary and fiscal policies are subject to threshold effects, a result that gives account of a number of recent empirical...

Longtemps négligées et jamais vraiment traitées, les questions budgétaires figurent parmi les dossiers les plus sensibles de la construction européenne. La situation budgétaire actuelle apparaît assez atypique ce qui soulève de nombreuses questions et incertitudes pour l'avenir....

Contrasting with the 1929 great crisis, authorities intervened forcefully in 2008 to stop the disintegration of the financial system. Governments and central banks then sought to revise the prudential regulation in depth. It would be optimistic, however, to believe that prudential measures,...