FISCAL POLICY AND ECONOMIC GROWTH IN FRANCE, GERMANY, AND GREECE

Fiscal policy is a major component of a country’s economic policy. To counteract the negative effects of economic or extra-economic factors, the state can use a series of countercyclical policies. Fiscal policy is one of the most important short term policies that can be applied at the macroeconomic level. Fiscal policy can therefore affect a country’s economic development. Using statistical software the author examines the possible correlations between fiscal policy and economic growth in three EU countries: France, Germany, and Greece. The period took into consideration for the study is 1996-2009.