Fiscal adjustments and their effects during the transition to the EMU

Authors
Gobbin, N van Aarle, B
Citation
N. Gobbin et B. Van Aarle, Fiscal adjustments and their effects during the transition to the EMU, PUBL CHOICE, 109(3-4), 2001, pp. 269-299
Citations number
33
Categorie Soggetti
Politucal Science & public Administration
Journal title
PUBLIC CHOICE
ISSN journal
00485829 → ACNP
Volume
109
Issue
3-4
Year of publication
2001
Pages
269 - 299
Database
ISI
SICI code
0048-5829(200112)109:3-4<269:FAATED>2.0.ZU;2-Z
Abstract
The transition phase to EMU has been accompanied by considerable monetary a nd fiscal consolidation efforts in the EU. This paper analyses this consoli dation process and its effects on economic activity in the EU. It is tested to what extent fiscal retrenchment efforts have depressed or stimulated pr ivate spending. In the case of the latter non-Keynesian effects dominate th e traditional Keynesian expenditure effects of government spending, taxatio n and transfer payments.