Fiscal policy changes in EU show mixed impact on private spending.
The article examines how fiscal policy changes in European Union countries affected private consumption during the transition to the Economic and Monetary Union. The researchers analyzed different approaches to understand the impact of these adjustments on private spending. The results show mixed evidence for non-linear relationships between fiscal adjustments and private consumption. There is no clear support for the idea that cutting government spending can boost the economy in the EMU context. The study also considered various factors that could influence the outcomes.