www.economist.com/briefing/201... Back in 2010 the Economist was the case for tax cuts: "A paper by António Afonso of the European Central Bank and Davide Furceri of the OECD found that increases in government spending as a proportion of GDP tended to be correlated with slower economic growth."
Sharing the pain
Increasing budget deficits and rising government debts are likely to entail fierce political battles—not least between taxpayers and public-sector workers
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Happy to be in the World's top 1%! Elsevier Data Repository, Aug 2025. "Updated science-wide author databases of standardized citation indicators" elsevier.digitalcommonsdata.com/datasets/btc...
www.ifo.de/en/cesifo/pu... A discretionary positive shock to the primary balance leads to a decrease in real government debt, a result consistent with a Monetary Dominant regime and sustainable fiscal practices.
14th UECE Conference on Economic and Financial Adjustments. Fri, Jul 17, 2026. ISEG. Lisbon. uece2.rc.iseg.ulisboa.pt/events/2026/... Keynote: Roel Beetsma
www.sciencedirect.com/science/arti... António Afonso, Francisco Gomes Pereira. "An expansionary monetary policy stance, following an increase in the debt-to-GDP ratio, leads to lower primary balances."
Does monetary policy influence euro area fiscal sustainability?
This paper studies the impact of monetary policy on fiscal sustainability in the euro area. We extend a standard fiscal reaction function by introduci…
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Reposted by: António Afonso
lnkd.in/dkjH8fbV "Greater skewness is associated with higher sovereign bond yields and higher short-term interest rates. In contrast, an increase in debt concentration tends to reduce both sovereign bond yields and short-term interest rates."
lnkd.in/deQA9iiP Copernicus proposed a single unifying theory: the Quantity Theory of Money. In his 1526 tract, Copernicus identified the single common cause of all inflation as the general increase in the quantity of coins minted from any given metal basis.
Investment dynamics and economic growth: a robust VAR analysis of public and private investments across 18 advanced economies: Applied Economics: Vol 0, No 0 - Get Access www.tandfonline.com/doi/full/10....
Investment dynamics and economic growth: a robust VAR analysis of public and private investments across 18 advanced economies
This study examines the macroeconomic returns on public and private investments in 18 advanced economies from 1965 to 2019 using a Vector Autoregressive (VAR) approach. By exploring the interplay b...
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