Future fiscal policy in Eurozone may see non-Keynesian effects for growth.
The article examines how Eurozone countries can reduce their high public debt by implementing stricter fiscal policies. The researchers analyzed data from 1995 to 2013 to see if non-Keynesian effects of fiscal consolidations could help in this process. They found evidence that certain fiscal policies can lead to positive effects on the economy, potentially aiding in reducing debt. The study also looked at different strategies for implementing fiscal consolidations and their impact on short-term growth. Overall, the research suggests that specific fiscal policies can have beneficial effects on the economy, contributing to a process of debt reduction.