Eurozone Stimulus: A Myth, Some Facts, and Estimates

Publication: Policy Letter No. 2, 2009
Topic Area: Macro and Finance
Authors: Volker Wieland
Date: Sep 2009
Keywords: fiscal stimulus packages

Eurozone governments have engaged in substantial fiscal stimulus. This column argues against further fiscal measures, claiming that forward-looking firms and households will cut their expenditure in response to governmental expansions. It warns that further fiscal efforts risk eroding financial and monetary policies that are combating the crisis.

Download PDF

Back to list