Economic policy and public finances

In Chapter II, we examine the sources of growth from a theoretical and empirical point of view: first in the context of the neoclassical model, then briefly form the point of view of the new growth theories. By comparing performance with the US and between European countries, an attempt will be made to diagnose European and Belgian strengths and weaknesses. In Chapter III, we consider the interaction between the economic shocks that European countries have experienced during the last decades and the specificities of the European economic and social model.The neoclassical model will be modified to take into account these specificities. In Chapter IV, fiscal policy is examined from two complementary angles (medium and long term policy versus short-term policy) in order to consider fiscal policy in the overall macroeconomic stabilization policy and to consider the issue of the public finances sustainability.