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We formulate and estimate a simple fiscal policy reaction function for the euro area and individual euro area countries. Our reaction function allows for primary surpluses to feature three components: an anti-cyclical response of primary surpluses to the output gap, a response to the debt-GDP...
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This paper estimates a fiscal reaction function (FRF) framework for euro area countries and derives a novel approach to measure fiscal fatigue. As in previous studies, we find evidence that euro area sovereigns abide, on average, by (weak) sustainability constraints. The primary balance improves...
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We assess public finances solvency for Euro Area countries using quarterly data between 1999Q1 and 2020Q4. Through a country-by-country analysis, the answer to the title question is true. For most countries, (i) the primary budget balance reacts positively to the lagged public debt ratio and...
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On the one hand, every official document about fiscal policy in Spain, and most orthodox academic papers argue that Spain has no "fiscal space" and that it should apply resolute actions to assure budget consolidation. On the other hand, Spain also had the second highest unemployment rate in the...
Persistent link: https://www.econbiz.de/10011609617
Einerseits gehen alle offiziellen Dokumente zur Fiskalpolitik in Spanien und die meisten wissenschaftlichen … zweithöchste Arbeitslosenquote im Euroraum: 21 % der Erwerbspersonen. Eine rasche Rückführung dieser Quote würde einen höheren … die Regierung im zweiten Szenario mit Hilfe der Fiskalpolitik die Binnennachfrage anregt und dafür sorgt, dass ein …
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