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...

The evolution of Regional and Local governments’ spending in Spain is currently under close scrutiny by national and international investors and analysts, international organizations and rating agencies. Indeed, some 50% of general government spending and some 70% of public employment are...