Vranceanu, Radu; Besancenot, Damien - In: Applied Economics Letters 20 (2013) 8, pp. 758-762
This article argues that in Euro-area economies, where the European Central Bank (ECB) cannot bail out financially distressed governments, the spending multiplier is adversely affected by the amount of public debt. A regression model on a panel of 26 EU countries over the last 16 years shows...