We show that in the EU there were diverse causes for the sovereign debt crisis. Yet, fiscal austerity was hastily imposed assuming that the multiplier would be weak and fiscal consolidation could quickly be achieved. Yet, it turned out that fiscal consolidation is state dependent: It is...

This paper investigates the relationship between the magnitude of automatic stabilizers in the tax and transfer systems of 19 EU countries and the US, and discretionary fiscal stimulus packages passed by these countries during the recent economic crisis. In particular, we ask whether countries...

Nachdem der Stabilitäts- und Wachstumspakt seine Bindungswirkung nur unzureichend entfaltet hat, setzen die Staats- und Regierungschefs der Eurozone nun auf eine noch stärkere Regelbindung. Was sind die Vorteile einer solchen Politik gegenüber diskretionären Entscheidungen? Lässt sich...