This paper investigates the effects of changes in fiscally-induced and trade-related variables on the rate of economic growth. Adopting the simplest possible version of the Keynesian/Ramsey paradigm, it is showed that both the level as proxy for the short-run impact, and the change as proxy for...

This paper revisits the issue of the Ricardian Equivalence Hypothesis (REH), as since its reemergence, its theoretically underlying premises have been called into question. Yet, severe criticism raised by its opponents concerning the efficacy of government actions has further challenged the need...

There is a growing literature of theoretical models and empirical advances that has led most researchers to subscribe to the view that national macroeconomic indicators are the crucial determinants of equilibrium interest rates. This paper revisits the causal structure linking the G7 long-term...

This paper has a two-fold orientation; firstly, it examines the linkages and the time-series properties of a set of nominal and real macroeconomic variables in Greece, under different exchange rate systems and varying fiscal regimes. Secondly, it makes an effort to evaluate some macro-governance...

Fiscal consolidation is used as a synonym for austerity much as debt restructuring is used as a euphemism for partial repudiation. Inside the political arena of international economics, the nomenclature of government officials in policy debates adopts colorful terminology, such as healthy public...

The dynamic effects of fiscal policy in terms of budget deficits and the concomitant implications of public debt have been the dominant issues in macroeconomic literature. Of particular concern is the choice of the life horizon (finite or infinite) of economic agents, since it remains crucial...

In this paper, we examine the view of capital fundamentalism claiming that national fiscal policies, with public investment being subject to adjustment costs, can be considered as the primary determinant of economic growth. According to our analysis, a country that experiences a low rate of...

Global macroeconomic imbalances have been, perhaps, one of the most contentious issues with magnificent implications for policymakers. Over the last decades, there has been an adherence to the view that public saving causes national saving and as such may sequentially represent macro-policy...