Furthermore, procyclical fiscal policies should be avoided in all countries.

Fiscal policy pro-cyclicality shall thus be avoided.

Furthermore, pro-cyclical fiscal policies should be avoided in all countries.

Furthermore, procyclical fiscal policies should be avoided in all countries.

However, procyclical fiscal policies exacerbated the imbalances.

The euro area had no capital markets union and a pro-cyclical fiscal policy.

In addition, the expenditures of pro-cyclical fiscal policies are not necessarily efficient.

One natural question: would it be necessary to have a pro-cyclical fiscal policy as the eurozone is already at full employment ?

The government initiated a procyclical fiscal expansion financed by withdrawals from the ECA so that by end 2011 it was almost depleted.

Chad’s experience with oil also illustrates the vulnerabilities stemming from a procyclical, volatile, and unsustainable fiscal policy in an oil-dependent economy.

One potential explanation is that fiscal policy may in fact have been procyclical in most developing countries over the sample period (Kaminsky, Reinhart, and Végh, 2004).

The heavily front loaded adjustment expected in 2011-13 covers 2/3 of the cumulative effort needed over the medium term, even if it has been at the cost of a procylical fiscal stance.

A country with a long resource horizon, however, need not worry about exhaustibility of the resource and could focus on managing volatility and avoiding procyclical fiscal policies.