Rethinking fiscal policy choices in the eurozone
Paul de Grauwe and Yuemei Ji, VOX CEPR Policy Portal, October 14th, 2019.
VONFORUM NEW ECONOMY
VERÖFFENTLICHT31. OKTOBER 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.