Fiscal Multipliers and Their Relevance in a Currency Union – A Survey

Gerhard Illing and Sebastian Watzka

German Economic Review, 2014, vol. 15, issue 2, 259-271

Abstract: type="main" xml:id="geer12027-abs-0001">

The article reviews the debate on government spending multiplier and provides a detailed discussion of the underlying economic mechanisms, focusing on the role of the state of the business cycle and the monetary policy reaction. Special emphasis is on the effects of fiscal policy within a currency union and its implications for the euro crisis.

Date: 2014
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