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This study investigates the short-run impact of fiscal consolidation on economic growth in Eurozone since Global Financial Crisis. The paper exclusively focuses on the effects of fiscal policy on economic growth in the short-run without covering the long term relationship since there is a general consensus that fiscal consolidation has direct and indirect positive effects on growth.We find negative short-run correlation between fiscal consolidation and growth in the Eurozone. Fiscal consolidation during a fragile economic recovery will dampen aggregate demand and increase unemployment in the short-run.
- Format: Pocket/Paperback
- ISBN: 9783639476958
- Språk: Engelska
- Antal sidor: 64
- Utgivningsdatum: 2014-11-19
- Förlag: AV Akademikerverlag