The recent global financial crisis has had a diverse effect on countries’ fiscal stance, especially throughout the EU. This paper examines the impact of macroeconomic shocks, including those to government revenues and expenditures, on EU countries’ fiscal stance, on aggregate, and within the...

Sound debt management practices help protect government expenditures on debt servicing from aggregate shocks and prevent the occurrence of debt crises. Building on Giavazzi and Missale (2004), this article examines the optimal allocation of government debt for the Czech Republic. To calibrate...

This paper investigates the effect of aggregate shocks on the fiscal stance of the EU, and of its old (OMS) and new (NMS) member states over a business cycle. The fiscal stance is measured by the government deficit. To study the impact of aggregate shocks, we use impulse responses derived from a...