Larch, Martin; Orseau, Eloïse; van der Wielen, Wouter - 2020
uncertainty around output gap estimates is not a convincing explanation for pro-cyclical policies. Discretionary measures remain …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 50 EU and non-EU countries, we provide evidence that the …