Keynesian and Non-Keynesian Effects of Fiscal Consolidation

Abstract

The fiscal sphere can be considered the quintessence of state participation in the economy. Fiscal regulation, respectively fiscal harmonization and control over national budgets, are considered as advanced coordination within the normative management. The impact of EU supranational fiscal regulation on the economies of member countries can be accomplished through budgetary consolidation. This article is dedicated to the analysis of the fiscal consolidation effects and the measures and instruments of fiscal regulation of the EU, which can theoretically be applied to the EU member countries, as well as the effectiveness of the supranational impact and national measures for the implementation and achievement of supranational solutions.

Keywords

• fiscal consolidation
• effects
• keynesianism
• output