Abstract
The argument about the role of fiscal multipliers on growth forecast errors found in Troika's macroeconomic adjustment programmes has multiple implications. The paper on fiscal multipliers published by IMF staff, which ignited this debate, can be linked to the effort of the USA to initiate a triangular diplomatic pressure on the Eurozone's core. This assumption is also verified by European Parliament resolutions published in March 2014. This paper discusses the hypothesis of triangular diplomacy and its application in the Eurozone crisis management.
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