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This book explores the role of national fiscal policies in a selected group of Euro-area countries under the European Economic and Monetary Union (EMU). In particular, the authors characterize the response of output to fiscal consolidations and expansions in the small Euro-area open economies...
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changes in indebtedness by adjusting their primary budget surplus targets. In addition, the central government appears to … sustainability. The responsiveness of sub-national fiscal stance to indebtedness, as well as that of central government revenue to … changes in primary spending, appears to have strengthened after 1998, when ceilings on indebtedness were introduced. …
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