We use a threshold VAR analysis to study whether the effects of fiscal policy on economic activity differ depending on financial market conditions. In particular, we investigate the possibility of a non-linear propagation of fiscal developments according to different financial market stress...

In this paper we assess the importance given in capital markets to the credibility of the European fiscal framework. We evaluate to which extent relevant fiscal policy events taking place in the course of 2002 produced a reaction in the long-term bond segment of the capital markets. Firstly, we...

We investigate the relevance of the characteristics of the Ministers of Finance in influencing, via their implementation of fiscal policies, the developments, in stock returns, sovereign yields and fiscal outcomes. For a panel of 27 EU countries, covering the period 1980-2012, we find that...