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Fiscal consolidation and macroeconomic stabilisationcrises. These countries would be ill-advised to relax their fiscal stance. The argumentsapply less to governments facing low interest rates. The main issue is where to drawthe line.ReferencesAcconcia, A, G Corsetti, and S Simonelli (2011), Mafia and Public Spending: Evidenceon the Fiscal Multiplier from a Quasi-experiment, CEPR DP 8305.Christiano, L, M Eichenbaum, and S Rebelo.(2011) When is the government spendingmultiplier large? Journal of Political Economy, 119(1):78–121.Cottarelli, C (2012), “Fiscal Adjustment: too much of a good thing?”, VoxEU.org,February 8.Corsetti, G, A Meier and G Müller (2009), “Fiscal Stimulus with Spending Reversals”,CEPR discussion paper 7302, 2009, Forthcoming, The Review of Economics andStatistics.Corsetti, G, K Kuester, A Meier, and G Müller (2010), “Debt consolidation and fiscalstabilisation of deep recessions”, American Economic Review: P&P 100, 41–45, May.Corsetti, G, K Kuester, A Meier, and G Müller (2012), “Sovereign risk, fiscal policyand macroeconomic stability”, IMF Working paper 12/33.Corsetti, G, A Meier, and G Müller (2012) “What Determines Government SpendingMultipliers?” Prepared for Economic Policy Panel in Copenhagen April.DeLong, B and L Summers (2012) Fiscal Policy in Depressed Economy,Eggertsson, G B and M Woodford (2003), “The zero interest-rate bound and optimalmonetary policy”, Brookings Papers on Economic Activity, 1:139–211.Rendahl, P (2012), Fiscal Policy in an Unemployment Crisis, Cambridge: CambridgeUniversity Press.33