Fiscal consolidation , public debt and output dynamics in the euro area : lessons from a simple model with time-varying fiscal multipliers

  • Christophe Blot, Marion Cochard, +3 authors Jérôme Creel
  • Published 2017
EMU countries have engaged in a consolidation of fiscal policies since 2011. This paper deals with the public debt and output dynamic consequences of this strategy. To this end, we develop a simple macroeconomic model of the Euro area, where fiscal multiplier is time-varying. Recent empirical evidence has indeed shown that fiscal multipliers were higher in… (More)