Europe's debt crisis casts doubt on the effectiveness of fiscal austerity in highly-integrated economies. Closed …

the euro crisis. It presents new econometric estimates on the link between cumulative GDP growth and fiscal austerity … closely related to the harshness of fiscal austerity. Cumulative multiplier estimates are found to vary in a range from 1.4 to …, a reasonable approximation of the size of the output losses due to fiscal austerity in the euro area during 2011-2013 is …

Austerity measures are frequently enacted when the sustainability of public finances is in doubt. Such doubts are … reflected in high sovereign yield spreads and put further strain on government finances. Is austerity successful in restoring … economic activity. The conditions under which austerity takes place are crucial. During times of fiscal stress, spreads rise in …

constraints of the SGP has driven many member states into austerity. In contrast, the golden rule of public investment proposed in …

We show that in the EU there were diverse causes for the sovereign debt crisis. Yet, fiscal austerity was hastily …