Fiscal multipliers revisited

Show simple item record Ikonen, Pasi Saarenheimo, Tuomas Virén, Matti 2014-09-23T07:28:11Z 2014-09-23T07:28:11Z 2013
dc.description ISSN-L: 0784-6509 (painettu) ISSN: 1456-5870 (online).
dc.description.abstract During the past year, there has been intense debate over the correlation between fiscal consolidation and economic growth. This article argues that the observed growth forecast errors for euro area countries in 2010 2011 were not caused by underestimated fiscal multipliers. Instead, the errors were due to a general reassessment of euro area sovereign risk, which disproportionately impacted the more vulnerable euro area countries. These countries experienced a sharp increase in their sovereign borrowing costs, a tightening of credit conditions and ultimately a sharper-than-expected contraction of domestic demand.
dc.format.extent 59-64
dc.language.iso eng
dc.subject finanssipolitiikka
dc.subject talouskasvu
dc.subject euroalue
dc.subject ennusteet
dc.subject virheet
dc.subject bkt
dc.subject valtionvelka
dc.subject SP
dc.subject RP
dc.title Fiscal multipliers revisited
dc.type Artikkeli
dc.identifier.urn URN:NBN:fi:bof-201408073675 Bank of Finland. Bulletin. Monetary policy and the global economy
dc.series.volume 87
dc.series.number 4 5.9.2013

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