TY  - BOOK
AU  - Vranceanu,Radu
AU  - Besancenot,Damien
TI  - The spending multiplier in a time of massive public debt: the Euro-area case
SN  - 13504851
AV  - HB1.A666 APP 
PY  - 2013///
CY  - New York
PB  - Taylor and Francis
KW  - Spending multiplier
KW  - Public debt
KW  - Illiquidity
KW  - Euro area
N2  - This article argues that in Euro-area economies, where the European Central Bank (ECB) cannot bail out financially distressed governments, the spending multiplier is adversely affected by the amount of public debt. A regression model on a panel of 26 EU countries over the last 16 years shows that a 10 percentage point increase in the debt-to-GDP ratio is connected to a slowdown in annual growth rates of 0.28 percentage point. Furthermore, the effectiveness of fiscal spending is adversely affected by the amount of public debt; in particular, when the public debt exceeds 150% of GDP, the growth impact of the deficit might turn negative
UR  - https://doi.org/10.1080/13504851.2012.741674
ER  -