The news correspondents obtained a quote from the research, "We find that investment and export growth increase after fiscal consolidation and decelerate after fiscal stimulus when the shocks are expenditure-based. In contrast, private consumption does not respond to fiscal policy shocks. Expenditure-based fiscal consolidations reduce wages, supporting the view that fiscal consolidation of such composition enhances the competitiveness and profitability of domestic enterprises."
According to the news reporters, the research concluded: "In contrast, we do not find evidence of fiscal shocks affecting households' confidence."
For more information on this research see: Panel Data Evidence on the Effects of Fiscal Policy Shocks in the EU New Member States. Fiscal Studies, 2014;35(2):189-224. Fiscal Studies can be contacted at: Wiley-Blackwell,
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