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, Ireland, Italy, the Netherlands, Spain, and Portugal, over the sample period 1999-2016, i.e., the EMU period. The main … (And Should) Germany Do It? Spillovers of German Fiscal Policies in the Euro Area -- 7 The labor market outcomes of …
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We provide evidence that expansionary fiscal policy lowers the return difference between more and less liquid assets—the liquidity premium. We rationalize this finding in an estimated heterogeneous-agent New-Keynesian (HANK) model with incomplete markets and portfolio choice, in which public...
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By constraining political incentives and discretion, the numerical fiscal rules are among the main institutional (legal) instruments to ensure fiscal discipline. As stated in this paper, in order to be effective, the numerical fiscal rules need to inflict sufficiently high costs for their...
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