Title: The controversy over fiscal multipliers as a case of triangular diplomacy: the limits of co-regulation in the management of the eurozone

Authors: Ioannis Papadopoulos; Vasileios A. Vlachos

Addresses: Department of International and European Studies, University of Macedonia, Egnatia 156, Thessaloniki 540 06, Greece ' Department of International and European Studies, University of Macedonia, Egnatia 156, Thessaloniki 540 06, Greece

Abstract: The argument about the role of fiscal multipliers on growth forecast errors found in Troika's macroeconomic adjustment programmes has multiple implications. The paper on fiscal multipliers published by IMF staff, which ignited this debate, can be linked to the effort of the USA to initiate a triangular diplomatic pressure on the Eurozone's core. This assumption is also verified by European Parliament resolutions published in March 2014. This paper discusses the hypothesis of triangular diplomacy and its application in the Eurozone crisis management.

Keywords: Eurozone; crisis management; fiscal consolidation; IMF; triangular diplomacy; fiscal multipliers; co-regulation; growth forecast errors; emergency management.

DOI: 10.1504/IJDIPE.2015.073907

International Journal of Diplomacy and Economy, 2015 Vol.2 No.4, pp.351 - 367

Received: 02 Apr 2014
Accepted: 04 Jun 2014
Published online: 30 Dec 2015 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article