Rethinking fiscal policy choices in the eurozone

Paul de Grauwe and Yuemei Ji, VOX CEPR Policy Portal, October 14th, 2019.

 

The authors propose that, when the interest rate is lower than the growth rate of the economy, fiscal policy can stabilize output while keeping public debt stable. As such, many EU countries have the fiscal space to stimulate their economies.

 

We use cookies to provide you with the best possible service. When you continue browsing the site, you consent to the use of cookies. More info.