Euro Area Periphery Countries' Fiscal Policy and Monetary Policy Surprises*
研究欧元区外围国家的财政政策如何应对降低主权债券收益率的货币政策冲击，发现财政平衡平均会改善。
Abstract We estimate local projections to explore how fiscal policy in euro area periphery countries responds to monetary policy shocks that lower sovereign bond yields. In particular, we assess whether the disciplining effect of financial markets on public finances is undermined by the ability of monetary policy to affect the conditions of external funds. We find that the fiscal balance, on average, improves in response to monetary policy surprises that bring down yields on sovereign bonds.