Corsetti, Giancarlo; Kuester, Keith; Meier, Andre; … - Department of Economics, European University Institute - 2010
The global financial crisis of 2008–09 has sent public debt on sharply higher trajectories. With the economic recovery … gradually taking hold, the focus is now shifting to fiscal “exit” strategies. Medium-term consolidation efforts are likely to … anticipation of such medium-term spending cuts generally enhances the expansionary effect of short-run fiscal stimulus. This …