Recent evidence has renewed views on the size of fiscal multipliers. It is notably emphasized that fiscal multipliers are higher in times of crisis. Starting from this literature, we develop a simple and tractable model to deal with the fiscal strategy led by euro area countries. Constrained by...

French GDP is expected to fall slightly in 2013(-0.2%)and recover by a modest 0.6% in 2014. Five years after thestart of the crisis, the French economy has a strong potential for recovery: GDP could grow spontaneously by2.6%per year on average in 2013 and 2014. But this spontaneousrecovery...

According to the NAK, Keynesian fiscal stabilisation policies have no favourable impact on output. This view is widely spread in Europe where public deficits and debts are judged excessive, which would raise interest rates and depress output (private agents anticipating future higher taxes)....