{"id":85831,"date":"2024-01-22T09:05:59","date_gmt":"2024-01-22T08:05:59","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/85831\/"},"modified":"2024-11-06T23:57:11","modified_gmt":"2024-11-06T22:57:11","slug":"macroeconomic-effects-of-fiscal-consolidation-policy-in-the-eu-2","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/85831\/","title":{"rendered":"Macroeconomic Effects of Fiscal Consolidation Policy in the EU"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-85831","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"Between 1995 and 1997, the member states of the European Union succeeded in reducing their government deficits from an average of 5 to 2\u00bd percent of GDP. Economic growth remained sluggish throughout the period, but the recession expected by many as a consequence of restrictive fiscal policies did not occur. This is due to a number of reasons: the favourable development of the world economy constituted the most important factor of growth during the phase of fiscal consolidation. Some countries, which were pursuing particularly restrictive policies, devalued their currencies by a significant margin and were thus able to compensate declining domestic demand through rising exports. Given the substantial drop of the saving ratio, the reduction of household disposable income did not result in a corresponding decline of consumption. The lowering of interest rates in the period of transition to European Monetary Union considerably eased the burden of interest payments on government debt for a number of countries. One-off effects and outsourcing measures also contributed substantially to the process of fiscal consolidation in the EU.","onlinedate":"1999-04-01 02:00:00","lang":"English","publication_series":"","publication_date":"19990401","publication_date_year":"","publication_date_full":false,"publication_num_pages":"","keywords":"[\"Macroeconomic Effects of Fiscal Consolidation Policy in the EU\"]","jelcodes":"[]","related_publications":"[]","pdf":276908,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"4","monthly_report_pages":"105-114","monthly_report_pages_sort":"105","issue":"2","journal":"Austrian Economic Quarterly","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[183747],"research_groups":[3500],"collaboration":"","persons":[4043,3893],"persons_data":"[{\"personId\":4043,\"personName\":\"Markus Marterbauer\",\"organisationNames\":[]},{\"personId\":3893,\"personName\":\"Ewald Walterskirchen\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Marterbauer, M.<\\\/span><span>, &amp; Walterskirchen, E.<\\\/span> (1999). <span>Macroeconomic Effects of Fiscal Consolidation Policy in the EU<\\\/span>. <span><em>Austrian Economic Quarterly<\\\/em><\\\/span>, <em>4<\\\/em>(2), 105-114. <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/665\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/665<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Marterbauer M<\\\/span><span>, Walterskirchen E<\\\/span>. <span class=\\\"title\\\"><span>Macroeconomic Effects of Fiscal Consolidation Policy in the EU<\\\/span><\\\/span>. <span>Austrian Economic Quarterly<\\\/span>. 1999 Apr;4(2):105-114.<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{3c653f09d4d14244ab48281d81bcda59,<\\\/div><div>  title    = \\\"Macroeconomic Effects of Fiscal Consolidation Policy in the EU\\\",<\\\/div><div>  abstract = \\\"Between 1995 and 1997, the member states of the European Union succeeded in reducing their government deficits from an average of 5 to 2\u00bd percent of GDP. Economic growth remained sluggish throughout the period, but the recession expected by many as a consequence of restrictive fiscal policies did not occur. This is due to a number of reasons: the favourable development of the world economy constituted the most important factor of growth during the phase of fiscal consolidation. Some countries, which were pursuing particularly restrictive policies, devalued their currencies by a significant margin and were thus able to compensate declining domestic demand through rising exports. Given the substantial drop of the saving ratio, the reduction of household disposable income did not result in a corresponding decline of consumption. The lowering of interest rates in the period of transition to European Monetary Union considerably eased the burden of interest payments on government debt for a number of countries. One-off effects and outsourcing measures also contributed substantially to the process of fiscal consolidation in the EU.\\\",<\\\/div><div>  keywords = \\\"Macroeconomic Effects of Fiscal Consolidation Policy in the EU, Macroeconomic Effects of Fiscal Consolidation Policy in the EU\\\",<\\\/div><div>  author   = \\\"Markus Marterbauer and Ewald Walterskirchen\\\",<\\\/div><div>  note     = \\\"Consolidation Effects\\\",<\\\/div><div>  year     = \\\"1999\\\",<\\\/div><div>  month    = apr,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  volume   = \\\"4\\\",<\\\/div><div>  pages    = \\\"105--114\\\",<\\\/div><div>  journal  = \\\"Austrian Economic Quarterly\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Macroeconomic Effects of Fiscal Consolidation Policy in the EU<\\\/p><p>AU  - Marterbauer, Markus<\\\/p><p>AU  - Walterskirchen, Ewald<\\\/p><p>N1  - Consolidation Effects<\\\/p><p>PY  - 1999\\\/4<\\\/p><p>Y1  - 1999\\\/4<\\\/p><p>N2  - Between 1995 and 1997, the member states of the European Union succeeded in reducing their government deficits from an average of 5 to 2\u00bd percent of GDP. Economic growth remained sluggish throughout the period, but the recession expected by many as a consequence of restrictive fiscal policies did not occur. This is due to a number of reasons: the favourable development of the world economy constituted the most important factor of growth during the phase of fiscal consolidation. Some countries, which were pursuing particularly restrictive policies, devalued their currencies by a significant margin and were thus able to compensate declining domestic demand through rising exports. Given the substantial drop of the saving ratio, the reduction of household disposable income did not result in a corresponding decline of consumption. The lowering of interest rates in the period of transition to European Monetary Union considerably eased the burden of interest payments on government debt for a number of countries. One-off effects and outsourcing measures also contributed substantially to the process of fiscal consolidation in the EU.<\\\/p><p>AB  - Between 1995 and 1997, the member states of the European Union succeeded in reducing their government deficits from an average of 5 to 2\u00bd percent of GDP. Economic growth remained sluggish throughout the period, but the recession expected by many as a consequence of restrictive fiscal policies did not occur. This is due to a number of reasons: the favourable development of the world economy constituted the most important factor of growth during the phase of fiscal consolidation. Some countries, which were pursuing particularly restrictive policies, devalued their currencies by a significant margin and were thus able to compensate declining domestic demand through rising exports. Given the substantial drop of the saving ratio, the reduction of household disposable income did not result in a corresponding decline of consumption. The lowering of interest rates in the period of transition to European Monetary Union considerably eased the burden of interest payments on government debt for a number of countries. One-off effects and outsourcing measures also contributed substantially to the process of fiscal consolidation in the EU.<\\\/p><p>KW  - Macroeconomic Effects of Fiscal Consolidation Policy in the EU<\\\/p><p>KW  - Macroeconomic Effects of Fiscal Consolidation Policy in the EU<\\\/p><p>M3  - WIFO series<\\\/p><p>VL  - 4<\\\/p><p>SP  - 105<\\\/p><p>EP  - 114<\\\/p><p>JO  - Austrian Economic Quarterly<\\\/p><p>JF  - Austrian Economic Quarterly<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Macroeconomic Effects of Fiscal Consolidation Policy in the EU - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/85831\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Macroeconomic Effects of Fiscal Consolidation Policy in the EU\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/85831\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-06T22:57:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/85831\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/85831\\\/\",\"name\":\"Macroeconomic Effects of Fiscal Consolidation Policy in the EU - 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