Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality

摘要: This article examines the short-term economic impact of alternative fiscal adjustment strategies, with an especial focus on their effect growth and income distribution. Based a sample 53 episodes occurred in fifteen EU Member States between 1960-2000, this shows that different strategies bring about consequences. Expenditure-based adjustments are preceded by bad initial conditions, accompanied devaluation, succeed cutting least productive expenditures budget, likely to have anti-Keynesian effects be expansionary. Nevertheless, they do so at expense increasing inequality. The opposite is true for revenue-based consolidations. nineties epitomize story expansionary consolidations via strong wealth credibility effects, but also rebirth trade-off equality, mediated policy.