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Fiscal austerity and economic growth in CEE countries

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  • Dan LUPU

    (Faculty of Economics and Business Administration, “A.I. Cuza” University, Romania)

Abstract

This article presents the effects of the fiscal austerity on the growth of GDP for the countries in Central and Eastern Europe. Austerity has become the watchword of all heads of state or government. Its effects are being felt increasingly in the pockets of citizens, including, or perhaps we should say especially in Central and Eastern European countries. Are the austerity measures taken the right answer to the problems currently facing the region? The paper’s findings invalidate the assiduously promoting by Eastern European countries of the fiscal austerity, this actually leading to a decrease in economic growth.

Suggested Citation

  • Dan LUPU, 2014. "Fiscal austerity and economic growth in CEE countries," EuroEconomica, Danubius University of Galati, issue 2(33), pages 89-96, November.
    • Handle: RePEc:dug:journl:y:2014:i:2:p:89-96
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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/2422/2509
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    References listed on IDEAS

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    1. Alberto Alesina & Filipe R. Campante & Guido Tabellini, 2008. "Why is Fiscal Policy Often Procyclical?," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1006-1036, September.
    2. Philip Arestis & Theodore Pelagidis, 2010. "Absurd Austerity Policies in Europe," Challenge, Taylor & Francis Journals, vol. 53(6), pages 54-61.
    3. Alberto Alesina & Silvia Ardagna, 2010. "Large Changes in Fiscal Policy: Taxes versus Spending," NBER Chapters, in: Tax Policy and the Economy, Volume 24, pages 35-68, National Bureau of Economic Research, Inc.
    4. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
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    Cited by:

    1. Mircea Asandului & Dan Lupu, 2015. "The Inflation and Economic Growth: Evidence from Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(3), pages 35-42, June.

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