Can there be a “Free Lunch” for Greece?

Greece Macro Monitor (12 July 2017)

 Fiscal policy relaxation in a depressed economy  – Can there be a “Free Lunch” for Greece?

This study leans on the literature on regime-dependent fiscal multipliers and the existence of hysteresis effects to demonstrate that, under certain conditions, a further relaxation of the agreed fiscal targets for Greece could not only benefit the country’s growth outlook, but might also lead to improved (rather than worsened) fiscal dynamics in the medium- and long-run.

Viewers can read the full report herebelow: GR MACRO MONITOR_July 2017