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Fiscal stability and dynamics in the Eurozone
Mid Sweden University, Faculty of Human Sciences, Department of Social Sciences.
2009 (English)In: Journal of Policy Modeling, ISSN 0161-8938, E-ISSN 1873-8060, Vol. 31, no 1, 51-57 p.Article in journal (Refereed) Published
Abstract [en]

The long term balance between fiscal efforts of stabilisation and necessary growth to obtain full capacity is the issue must be the focus of the discussion of economic policy by the countries in the Eurozone. Labour market reforms to create flexibility is important, and necessary, but not sufficient. To make labour market reforms feasible they must also be supported by short run measures to create flexibility in economic policy to stabilize demand on a steady state growth path. By the help of an elementary economic transformation model, it is possible to show that fiscal efforts of stabilisation in the Eurozone can be a threat against economic transformation itself, and hence, growth.

Place, publisher, year, edition, pages
2009. Vol. 31, no 1, 51-57 p.
Keyword [en]
Transformation; Growth; Economic Policy
National Category
Economics
Identifiers
URN: urn:nbn:se:miun:diva-7188DOI: 10.1016/j.jpolmod.2008.06.001ISI: 000264776000005Scopus ID: 2-s2.0-57649244869OAI: oai:DiVA.org:miun-7188DiVA: diva2:126963
Available from: 2008-12-08 Created: 2008-11-26 Last updated: 2016-09-23Bibliographically approved

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