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This paper provides new insights about the existence of expansionary fiscal consolidations in the Economic and Monetary Union, using annual panel data for 14 European Union countries over the period 1970-2012. Different measures for assessing fiscal consolidations based on the changes in the...
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wage to fall by around 10 percent relative to the country with the largest surplus (Japan). But the prevalence of nontraded … goods means that the real wage in Japan barely rises while the U.S. real wage falls by less than 1 percent. The geographic …
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