News | March 25, 2015
ECB Paper TI researchers picked up by Wall Street Journal
The European Central Bank working paper co-authored by by TI PhD student Oana Furtuna, fellows Roel Beetsma and Massimo Giuliodori (DGS TI) and ECB economist Jacopo Cimadomo was picked up by the Wall Street Journal: ‘ECB Paper Largely Backs Europe’s Austerity Strategy’.
The paper entitled ‘The confidence effect of fiscal consolidations’ argues that fiscal belt tightening tends to weaken confidence in the private sector, although those effects can be mitigated by focusing consolidation on spending rather than taxes.