potential way to address such imbalances is through a fiscal devaluation. We use a DSGE model calibrated to the euro area to … investigate the impact of a fiscal devaluation, modeled as a revenue-neutral shift from employers ́social contributions to the … Value Added Tax. We find that a fiscal devaluation carried out in "Southern European countries" has a strong positive effect …

This paper analyzes the sustainability of fiscal debt contingent on fiscal policy operating in two fiscal regimes. The … first regime is characterized by active policy (not reacting to debt) and the other by passive fiscal policy (reacting to … find that the longer an active policy regime is in force or, equivalently, the more likely fiscal policy is to remain in …

potential way to address such imbalances is through a fiscal devaluation. We use a DSGE model calibrated to the euro area to … investigate the impact of a fiscal devaluation, modeled as a revenue-neutral shift from employers social contributions to the … Value Added Tax. We find that a fiscal devaluation carried out in Southern European countries has a strong positive effect …