Cwik, Tobias; Wieland, Volker - European Central Bank - 2010
, we investigate whether the spending package announced by Euro area governments for 2009 and 2010 is likely to boost GDP … two years at the zero bound. Using a multi-country model, we find that spillovers between euro area countries are … negligible or even negative, because direct demand effects are offset by the indirect effect of an euro appreciation. New …