During the 2008/2009 recession, most countries resorted to discretionary fiscal policy measures. In this paper, we run two simulations with the KOF Swiss Economic Institute’s macroeconomic model to assess how both the Swiss stimulus measures, and the measures taken by Switzerland’s major...

Die Schweizer Wirtschaft befindet sich in einer Rezession, von der sie sich nicht schnell erholen wird. In dieser Situation kann die Konjunkturpolitik dazu beitragen, eine selbstverstärkende Abwärtsspirale zu verhindern und soziale Härten abzufedern. Da die Geldpolitik derzeit an Grenzen...

Towards the end of 2009, the world economy was recovering from its deepest recession since the end of World War II. Most countries around the world took resort to fiscal policy in order to foster this recovery. In this paper, we first discuss the pros and cons of discretionary fiscal policy from...

In the aftermath of the euro cash changeover consumers’ inflation perceptions rose substantially in the euro area countries while actual inflation figures remained almost unchanged. During that period media reporting on the potentially large inflationary effect of the euro introduction...