Larch, Martin; Claeys, Peter; Van Der Wielen, Wouter - 2022
Long shunned as slow and ill timed, the response to the Covid-19 pandemic initiated a reassessment of fiscal policy as … spite of active fiscal policy interventions. This paper takes a fresh look at economic scarring in 26 OECD countries …, including 14 EU member states, since 1970 and examines the role played by fiscal policy. We find that higher current expenditure …