Meyermans investigates how automatic fiscal stabilisers affect economic activity in the euro area. To this end he applies different shocks to an econometric model of the world economy (NIME) developed at the Belgian Federal Planning Bureau. He compares the adjustment path of the main...

A general feature of national fiscal systems is that they provide buffers against regional fluctuations in output and employment by redistributing income between the different regions of a country. Recent literature in connection with European monetary integration has stressed the insurance...