This study expands the empirical specification of Cerra and Saxena (2008), and allows short-termoutput growth regimes to be determined by globalization. Relying on a non-linear dynamic panelrepresentation, it reconciles the earlier results in the literature regarding the two oppositenarratives...

By distinguishing between discretionary and non-discretionary fiscal policy, this paper analyses the stability of fiscal rules for EMU countries before and after the Maastricht Treaty. Using both Instrumental Variables and GMM techniques, it turns out that discretionary fiscal policy has...