This paper provides an analysis of the role played by fiscal rules and the shadow economy on the evolution of public debt. Thus, we investigate the effectiveness of fiscal rules in limiting the level of indebtedness considering the presence of a shadow economy for 194 advanced, emerging, and...

The economy of the European Union has not recovered from the impact of the economic and financial crisis. Growth rates remain low and investment activity is weak. This questions current economic policies of the Economic and Monetary Union, known as austerity. In opposition to fiscal contraction...