Using a panel of annual data for 20 countries we show that synchronized fiscal consolidation (stimulus) programmes in different countries make their business cycles more closely linked, especially in the case of fiscal adjustments lasting 2 or 3 years. We also find: (i) little evidence of...

Using a panel of annual data for 20 countries we show that synchronized fiscal consolidation (stimulus) programmes in different countries make their business cycles more closely linked, especially in the case of fiscal adjustments lasting 2 or 3 years. We also find: (i) little evidence of...

Introduction -- Theories -- Optimal growth theory revisited -- Continuous-time modelling -- Demand factors and GDP growth -- Lamp & banks balance sheet constraints -- Secular stagnation -- Policies -- Public finance and inflation -- Government budget constraints -- Productivity as an...