Fiscal consolidation and growth in the Eurozone - Heydarov, Zaur
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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.…mehr

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Produktbeschreibung
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.
Autorenporträt
Z.Heydarov studied Economics at the Azerbaijan State Economics University and International Economics at the Berlin School of Economics and Law. Main research fields include: Monetary theory, Monetary Policy and Fiscal Policy.