Albacete, Nicolas; Fessler, Pirmin; Pekanov, Atanas - 2024
) for fiscal policy in the Euro area. We document an average MPC of 0.46 in the Euro area and illustrate its heterogeneity … (empirically measured heterogeneity of) MPC affects fiscal policy and makes it more effective in stimulating GDP growth than under … effects across the members of the Euro area. Therefore, MPC heterogeneity matters for efficient policy design at the national …