[9] Empirical studies tend to find that multipliers are indeed larger in recessions and in situations where consolidation takes place during a financial crisis. [10] However, many of these studies suffer from a lack of data as deep recessions tend to be quite rare events. Moreover, the way in which such studies are set up is often rather basic and fraught with estimation challenges.
I therefore trust that the authorities will do everything possible to remove such doubts. Conclusion Let me conclude. Greece has made tremendous progress in recent years to close its fiscal deficit. By any standards, what has been achieved is remarkable. But the process of restoring sustainability and growth in Greece is not yet complete – and neither is the progress so far secured.