Strategic interactions of fiscal policies in Europe: A global VAR perspective
The paper analyses the strategic interactions of fiscal policies in the European Union context, by modelling the interdependencies arising between public and private sectors’ saving–investment balances. In a global vector autoregressive framework, we use two empirical specifications to reflect some important differences in the sequencing of the policy decision-making process. In this setting, we draw
policy implications with respect to fiscal policy coordination and fiscal policy discretion. We highlight the importance of several factors
such as global capital flows, uncertainty with respect to policy actions and nature of the shocks, as key elements defining the dimension
of the prevailing policy tradeoffs.
DRAGOMIRESCU GAINA Catalin Florinel;
PHILIPPAS Dionisis;
2019-03-29
ELSEVIER SCI LTD
JRC95078
0261-5606 (online),
https://www.sciencedirect.com/science/article/pii/S0261560615001011?via%3Dihub,
https://publications.jrc.ec.europa.eu/repository/handle/JRC95078,
10.1016/j.jimonfin.2015.06.001 (online),
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