{"id":2598,"date":"2015-06-01T06:50:21","date_gmt":"2015-06-01T04:50:21","guid":{"rendered":"http:\/\/www.rsijournal.eu\/?p=2598"},"modified":"2021-01-20T13:19:42","modified_gmt":"2021-01-20T11:19:42","slug":"fiscal-activism-in-european-regions-evidence-on-fiscal-rules-before-and-after-the-euro","status":"publish","type":"post","link":"https:\/\/rsijournal.eu\/?p=2598","title":{"rendered":"FISCAL ACTIVISM IN EUROPEAN REGIONS: EVIDENCE ON FISCAL RULES BEFORE AND AFTER THE EURO"},"content":{"rendered":"<p><strong>Georgios KARRAS<\/strong><br \/>\nDepartment of Economics, University of Illinois at Chicago,<br \/>\n601 S. Morgan St., Chicago, IL 60607 7121<br \/>\ngkarras@uic.edu<\/p>\n<p><strong>Abstract<\/strong><br \/>\nThe introduction of the euro has been followed by noticeable fiscal divergence between the core and the periphery economies. This paper investigates the basic properties of fiscal policy in Europe and asks whether these properties are affected by euro membership. The empirical findings suggest that fiscal policy has been decisively countercyclical and generally sustainable. Adopting the euro raises the average country member\u2019s primary deficit by about 0.5% of GDP within a year and the effect accumulates to 1.76% of GDP ten years later, but these dynamic responses are far more pronounced in the periphery economies than in the core.<\/p>\n<p><em><a href=\"http:\/\/www.rsijournal.eu\/ARTICLES\/June_2015\/2.pdf\" target=\"_blank\" rel=\"noopener\">read more<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Georgios KARRAS Department of Economics, University of Illinois at Chicago, 601 S. Morgan St., Chicago, IL 60607 7121 gkarras@uic.edu Abstract The introduction of the euro has been followed by noticeable fiscal divergence between the core and the periphery economies. This paper investigates the basic properties of fiscal policy in Europe and asks whether these properties&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[181],"tags":[186,187,185],"class_list":["post-2598","post","type-post","status-publish","format-standard","hentry","category-published","tag-euro-zone","tag-fiscal-policy","tag-fiscal-rules"],"_links":{"self":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/2598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2598"}],"version-history":[{"count":4,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/2598\/revisions"}],"predecessor-version":[{"id":3829,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/2598\/revisions\/3829"}],"wp:attachment":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}