Fiscal Policy within the Eurozone

Abstract

As outlined in Chapter 3, the relationship between the economy and the political system has always attracted the interest of economists, since it is obvious that politics will influence the choice of economic policies and, consequently, economic performance. Of particular interest to macroeconomists is the influence that the interaction of political and economic factors has on such issues as business cycles, inflation, unemployment and the conduct and implementation of stabilisation policies together with the origin of persistent budget deficits.