Abstract
This paper discusses, from a theoretical perspective, the literature on the expansionistic effects of fiscal consolidations. We have analysed the question in the framework of the truly Keynesian setting, of an IS-LM model extended to allow for the term structure of interest rates, and of the intertemporal neo-classical macromodel. Particular attention has been given to the theme of expectations, as well as to the role of interest rate and saving in driving output variations.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
