Vranceanu, Radu; Besancenot, Damien - HAL - 2012
This paper argues that in Euro-area economies, where the ECB cannot bail-out
nancially distressed governments, the …
scal multiplier is adversely affected by the amount of public debt. A regression model on a panel of 26 EU countries over … amount of public debt; for a debt-to-GDP ratio above 150% the impact on growth of the
scal stimulus turns negative. …