This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

This paper reviews the theoretical and empirical literature on the effectiveness of fiscal
policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can …

The term “austerity” indicates a policy of sizeable reduction of govern-ment deficits and
stabilization of government debt achieved by means of spending cuts or tax increases, or …

Neoliberalism has become a dirty word. In political discourse, it stigmatizes a political
opponent as a market fundamentalist; in academia, the concept is also mainly wielded by its …

Many countries are pursuing innovation-led “smart” growth, which requires long-run
strategic investments and public policies that aim to create and shape markets, rather than …

This volume examines the interrelationship between democratic legitimacy at the European
level and the ongoing Eurozone crisis that began in 2010. Europe's crisis of legitimacy …

The paper develops a typological framework of the roles of state investment banks (SIBs) in
the economy. The typology identifies four different roles: countercyclical; developmental; …

Abstract After the Global Financial Crisis, a controversial rush to fiscal austerity followed in
many countries. Yet research on the effects of austerity on macroeconomic aggregates was …

This essay briefly reviews the state of knowledge about the government spending multiplier.
Drawing on theoretical work, aggregate empirical estimates from the United States, as well …

We review the debate surrounding the macroeconomic effects of deficit reduction policies
(austerity). The discussion about" austerity" in general has distracted commentators and …