Afonso, António; Carvalho, Francisco Tiago - 2021
We assess the cyclicality of fiscal policy in the 19 Euro area countries, notably during recessions, for the period … 1995-2020. We use a time-varying measure of fiscal cyclicality to describe fiscal policy developments. The results suggest … that during recessions discretionary fiscal policy becomes more pro-cyclical, but the overall budget balance becomes more …