Fiscal policy impacts Eurozone business cycles, but countries lack consistency.
The article explores how fiscal policy affects how closely the economies of European countries in the Eurozone move together. By looking at the relationship between each country's economic cycles and the overall Eurozone cycle, the researchers found that fiscal policy does impact how well countries' economies sync up. This suggests that using fiscal policy can help stabilize the Eurozone's economy. However, the study also shows that none of the countries consistently use fiscal policy to make their economic cycles align more closely with the Eurozone as a whole.