Larch, Martin; Orseau, Eloïse; Van der Wielan, Wouter - 2020
volatility of output gap estimates is not a convincing explanation for pro-cyclical policies. With the exception of very large …Rather than stabilising aggregate demand, discretionary fiscal policy tends to amplify cyclical fluctuations of output … scope for stabilising output. Using panel data covering close to 40 EU and non-EU countries, we provide evidence that the …