used to evaluate fiscal policy stimulus proposals are not robust. Government spending multipliers in an alternative …

measures emphasize that government spending can stimulate additional private spending — the Keynesian multiplier effect. Thus …, we investigate whether the spending package announced by Euro area governments for 2009 and 2010 is likely to boost GDP … increase in government spending will reduce private consumption and investment significantly. Only a model that largely ignores …

the budget to balance by gradually reducing this spending ratio over time to the level that prevailed prior to the crisis …