This paper discusses activist fiscal policies during good times, the crisis period and for the post-crisis period. The study argues, first, that fiscal policies were overly imprudent during the boom phase preceding the crisis. This was due to excessive expenditure growth and problems with...

In a standard linear structural VAR framework we analyse the size and sign of fiscal multipliers in the euro area, using a newly available quarterly dataset of fiscal variables for the period 1981-2007. From a policy perspective, the analysis of fiscal multipliers in “average times” provides...

This paper provides a study of bond yield differentials among EU government bonds issued between 1993 and 2005 on the basis of a unique dataset of issue spreads in the US and DM (Euro) bond market. Interest differentials between bonds issued by EU countries and Germany or the USA contain risk...