This paper estimates the effects of exogenous fiscal policy shocks in Spain in a VAR framework. Government expenditure … of fiscal policy in Spain since the mid-nineties points to the conclusion that the consolidation process does not seem to …

A fiscal shock due to a shift in taxes or in government spending will, at some point in time, constrain the future path … the effects of fiscal shocks, keeping track of the debt dynamics that arise following a fiscal shock and allowing for the …

government budget, as social insurance in Spain is not actuarially fair. Finally, we also assess the impact of a decline in …

consumption response. We investigate in a SVAR whether anticipation of the fiscal shock reverses the sign of this dynamic response … the US that consumption falls in reaction to an expenditure shock once the model allows for one-period-ahead anticipation … of this shock. Modelling anticipation of fiscal shocks is thus crucial to correctly capture their macroeconomic effects …

, characterise somehow the monetary policy shock and then plot impulse responses. In this paper I attempt to do this exercise with …’ strategy applied recently by several authors. I also propose another approach, namely, imposing restrictions on implied shock ….1-0.15% lower consumer prices; (4) the impact on prices is slower than on output; it reaches its bottom 4-6 years after the shock …