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Fiscal Discipline Under Scarring: Do Grand Spending Plans Lift Growth and Curb Debt? / Claeys, Peter (CC BY)

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Periodical

Title:
˜Theœ Economists' voice
Publication:
Berlin Boston, Mass.: ˜Deœ Gruyter
Note:
Gesehen am 06.02.12
C!URL-Ä(06-02-12)
Scope:
Online-Ressource
ISSN:
1553-3832
ZDB-ID:
2162320-X ZDB
VÖBB-Katalog:
35425729
Keywords:
Zeitschrift
Classification:
Wirtschaft
Collection:
Wirtschaft
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen
Title:
˜Theœ Economists' voice
Publication:
Berlin Boston, Mass.: ˜Deœ Gruyter
Note:
Gesehen am 06.02.12
C!URL-Ä(06-02-12)
Scope:
Online-Ressource
ISSN:
1553-3832
ZDB-ID:
2162320-X ZDB
VÖBB-Katalog:
35425729
Keywords:
Zeitschrift
Classification:
Wirtschaft
Collection:
Wirtschaft
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen

Article

Author:
Claeys, Peter
Title:
Fiscal Discipline Under Scarring: Do Grand Spending Plans Lift Growth and Curb Debt?
Publication:
Berlin Boston, Mass.: De Gruyter, 2026
Language:
English
Information:
Abstract: Concerns about faltering productivity have led to calls for grand fiscal strategies to ignite economic growth. Targeted spending sprees are believed to be lifting economies out of stagnation. This policies shift stands in stark contrast to the type of fiscal restraint (austerity) advocated after the Global Financial Crisis. This paper examines whether fiscal policy can lift economic growth after recessions characterised by prolonged economic stagnation – also known as scarring-while keeping debt under control. I find the odds of such an expansionary debt-reducing fiscal policy are limited due to a typical deficit bias in the short term – a combination of much lower tax revenues and reduced government spending – and the use of tax-based consolidations in the longer run. Higher taxes even push governments to raise spending to higher levels a decade after the recession. The combination of procyclical fiscal policy in the short term, with distortionary tax increases in the long term is unlikely to lift productivity growth.
Scope:
Online-Ressource
Note:
Open Access
Archivierung/Langzeitarchivierung gewährleistet
Keywords:
fiscal policy ; recession ; scarring ; debt ; growth ; E32 ; E62 ; E65 ; H11
Classification:
Wirtschaft
URN:
urn:nbn:de:101:1-2609180336270.854606034223
Collection:
Wirtschaft
Copyright:
CC BY
Accessibility:
Free Access
Author:
Claeys, Peter
Title:
Fiscal Discipline Under Scarring: Do Grand Spending Plans Lift Growth and Curb Debt?
Publication:
Berlin Boston, Mass.: De Gruyter, 2026
Language:
English
Information:
Abstract: Concerns about faltering productivity have led to calls for grand fiscal strategies to ignite economic growth. Targeted spending sprees are believed to be lifting economies out of stagnation. This policies shift stands in stark contrast to the type of fiscal restraint (austerity) advocated after the Global Financial Crisis. This paper examines whether fiscal policy can lift economic growth after recessions characterised by prolonged economic stagnation – also known as scarring-while keeping debt under control. I find the odds of such an expansionary debt-reducing fiscal policy are limited due to a typical deficit bias in the short term – a combination of much lower tax revenues and reduced government spending – and the use of tax-based consolidations in the longer run. Higher taxes even push governments to raise spending to higher levels a decade after the recession. The combination of procyclical fiscal policy in the short term, with distortionary tax increases in the long term is unlikely to lift productivity growth.
Scope:
Online-Ressource
Note:
Open Access
Archivierung/Langzeitarchivierung gewährleistet
Keywords:
fiscal policy ; recession ; scarring ; debt ; growth ; E32 ; E62 ; E65 ; H11
Classification:
Wirtschaft
URN:
urn:nbn:de:101:1-2609180336270.854606034223
Collection:
Wirtschaft
Copyright:
CC BY
Accessibility:
Free Access

Contents

Table of contents

  • ˜Theœ Economists' voice (Rights reserved)
  • ˜Theœ Desperate Monetary Policy of the Bank of Japan / Murai, Taiki (CC BY)
  • Will Kevin Warsh Change the Fed’s Influence on Monetary Policy Research? / Bugdalle, Tom (CC BY)
  • How Compelling is the Case for Common European Debt? / Lappe, Marie-Sophie (CC BY)
  • Europe’s Missing Safe Asset / Farina, Tatiana (CC BY)
  • Reforms to Ensure the Stability of the Euro–Member States, the EU and the ECB Need to Act / Cochrane, John H. (CC BY)
  • Reasons for the New Gold Rush / Stöferle, Ronald-Peter (CC BY)
  • Rethinking the Case for Crypto Regulation / Thornton, John (CC BY)
  • Digital Money – The Rise of Bitcoin and Stablecoins / Mayer, Thomas (CC BY)
  • From Dependence to Sovereignty: Why Europe Needs a Digital Euro / Balz, Burkhard (CC BY)
  • Stablecoins, Historical Precedent, Technological Novelty and Limited Reality / Gros, Daniel (CC BY)
  • ˜Theœ Implicit Market Fundamentalism of Interventionists / Braun, Eduard (CC BY)
  • Fiscal Discipline Under Scarring: Do Grand Spending Plans Lift Growth and Curb Debt? / Claeys, Peter (CC BY)
  • ˜Theœ Crisis of Fiat Money? / Heinemann, Friedrich (CC BY)
  • Frontmatter (Rights reserved)
  • A Strawman Proposal to Use International Flexibility in Achieving Developed Countries Climate Targets to Catalyse Global Decarbonisation / Zachmann, Georg (Rights reserved)
  • A Fragile Surge: European Support to Ukraine in Early 2025 – New Insights from the Kiel Institute Ukraine Support Tracker / Mellace, Federico (CC BY)
  • War in Ukraine: Is Russia Challenging the US Global Dominance? / Libman, Alexander (CC BY)
  • Will the US Protect Taiwan in Case of Chinese Military Aggression? / Schnabl, Gunther (CC BY)
  • Will China Replace the USA as the World’s Leading Power / Weede, Erich (CC BY)
  • ˜Theœ Fed in the Crosshairs / Eichengreen, Barry (Rights reserved)
  • ˜Theœ WTO Minus One: A Rules-Based Global Trading System Without The US? / Baur, Andreas (Rights reserved)
  • After Multilateralism: The US and the World Bank / Kersting, Erasmus (Rights reserved)
  • ˜Theœ Triple Mandate of Development, Climate, and Humanitarian Aid / Deep, Akash (Rights reserved)
  • Trumpian Neomercantilism, European Fiscal Capacity and the Global Minimum Tax / Hakelberg, Lukas (CC BY)
  • Germany’s Fiscal Turn: Structural Challenges, Political Risks, and European Spillover Effects / Christl, Michael (Rights reserved)
  • Accountability in Action: The European Parliament’s Assessment of the ECB 2024 Annual Report / de Haan, Jakob (CC BY)
  • Alternative Policy Rules and Post-Covid Fed Policies / Papell, David H. (Rights reserved)
  • ˜Theœ End of US Dominance? / Heinemann, Friedrich (CC BY)
  • Frontmatter (Rights reserved)
  • ˜Theœ Micro-Macro Paradox of Aid Revisited / Paldam, Martin (CC BY)
  • Causes of Climate Models Uncertainty and Implications for Economic Policy / Greiner, Alfred (CC BY)
  • Why Did Putin Invade Ukraine? Why Did Hamas Attack Israel? Answers Suggested by Economic Models of Dictatorship and Terrorism / Wintrobe, Ronald (CC BY)
  • Efficacy of Economic Sanctions on Imposing Costs to State-Owned Enterprises: The Case of Iran / Ebadi, Ebad (Rights reserved)
  • Lost Economic Output due to High Bureaucratic Burden: The Case for Germany / Pfaffl, Christian (Rights reserved)
  • Using Market Design to Reform the US Electoral College / Boudreau, James (CC BY)
  • Reply to Comment on “EU Taxonomy: Mission Impossible” / Kooths, Stefan (CC BY)
  • Frontmatter (Rights reserved)
  • When Less Means More: Policy Accumulation, Administrative Capacities, and Policy Performance / Fernández-i-Marín, Xavier (Rights reserved)
  • ˜Theœ Present Monetary Policy Framework is Seriously Flawed / Biggs, Michael (Rights reserved)
  • Taxonomy Disclosure in the EU – A Useful Framework, Despite Current Challenges / Schütze, Franziska (CC BY)
  • Balancing Power: The Impact of Legislative Structure on Sunset Laws and Administrative Procedure Acts / Baugus, Brian (Rights reserved)
  • Financial Stability and Monetary Policy Autonomy in Japan. Should Japan Peg the Yen to the Dollar? / Schnabl, Gunther (CC BY)
  • Comment on “EU Taxonomy: Mission Impossible” by Kooths (2023) / Mehmandoost Kotlar, Ali (Rights reserved)
  • A 3D Look at Argentina: Deregulation, Dollarization, Deflation / Ferrero, Bernardo (Rights reserved)
  • Regulation and Income Mobility / Geloso, Vincent (Rights reserved)
  • Editorial: Bureaucracy, Regulation and Deregulation / Heinemann, Friedrich (CC BY)
  • Factors Driving India’s Growth: Challenges and Policy Measures / Jain, Vandana (Rights reserved)
  • Frontmatter (Rights reserved)
  • Fiscal Prospects for Italy / Bordignon, Massimo (CC BY)
  • ˜Theœ Interplay of Humans, Technology, and Organizations in Realizing AI’s Productivity Promise / Hölzle, Katharina (Rights reserved)
  • Explaining the Divergence in German and French Public Finances / Eisl, Andreas (Rights reserved)
  • ˜Theœ Potential and Distributional Effects of CBAM Revenues as a New EU Own Resource / Hillebrandt, Ruben (Rights reserved)
  • New Technologies: End of Work or Structural Change? / Rademakers, Emilie (CC BY)
  • Economic Policy Making Under Hardening Fiscal Constraints / Heinemann, Friedrich (Rights reserved)
  • An EU Fund to Incentivise Public Investments with Positive Externalities / Beetsma, Roel (CC BY)
  • Frontmatter (Rights reserved)
  • Public Debt Ratios Will Increase For Some Time. We Must Make Sure That They Do Not Explode / Blanchard, Olivier (Rights reserved)
  • ˜Theœ Energy Transition and Its Macroeconomic Effects / Americo, Alberto (Rights reserved)
  • Is the EU’s AI Act Merely a Distraction from Europe’s Productivity Problem? / Meyers, Zach (Rights reserved)
  • ˜Theœ Political Economy of Academic Freedom / Bjørnskov, Christian (Rights reserved)
  • Editorial: Productivity Growth in the Age of AI / Heinemann, Friedrich (CC BY)
  • A Comparative Evaluation of Fiscal Stabilization Strategies during the Covid-19 Pandemic with Germany as a Reference Point / Baudisch, Victoria (CC BY)
  • Inflation and Fiscal Policy: Is There a Threshold Effect in the Fiscal Reaction Function? / Briodeau, Clémence (Rights reserved)
  • EU Debt Instruments and Fiscal Transparency: The Case of the EU Recovery Fund / Demir, Ahmed (Rights reserved)
  • ˜Theœ Case for Putting a Public Investment Clause into the German Debt Brake / Janeba, Eckhard (CC BY)
  • “The Report of My Death was an Exaggeration”: Business Dynamism in the United States / Mayo, John W. (Rights reserved)
  • How Can Artificial Intelligence Transform Asset Management? / Immenkötter, Philipp (Rights reserved)
  • Frontmatter (Rights reserved)
  • A Latticework of Inflation Models / Mayer, Thomas (Rights reserved)
  • ˜Theœ Swiss Debt Brake Is Democratic, Strict, Transparent, and Binding. A Model to Follow? / Mosler, Martin (Rights reserved)
  • ˜Theœ Relationship Between the German Current Account and Financial Account: Evidence from the Toda-Yamamoto Causality Approach / Murai, Taiki (CC BY)
  • Whither the Walking Dead? The Consequences of Artificial Intelligence for Zombie Firms / Banerjee, Ryan (Rights reserved)
  • On the Reform of Fiscal Rules in the European Union: What Has Been Achieved, and How Did We Get Here? / Schnellenbach, Jan (Rights reserved)
  • AI in Europe – Is Regulation the Answer to Being a Laggard? / Bertschek, Irene (CC BY)
  • Macroeconomic Productivity Effects of Artificial Intelligence / Saam, Marianne (CC BY)
  • ˜Theœ Tax Attractiveness of EU Locations for Corporate Investments: A Stocktaking of Past Developments and Recent Reforms / Gundert, Hannah (CC BY)
  • Will Geopolitics Accelerate China’s Drive Towards De-Dollarization? / Ryan, John M. T. (Rights reserved)
  • ˜Theœ AI Revolution: A New Paradigm of Economic Order / Vöpel, Henning (Rights reserved)

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