The results suggest that heavily indebted corporate sectors grew faster as a consequence of the large surprising interest reductions, but only when they were located in countries with relatively less regulated product markets. This effect works primarily via shortterm debt, which firms can adjust more quickly than long-term debt. It may, however, be attenuated by an uncompetitive banking sector.
Marco Buti (2017) addressed the relationship between demand and supply policies from a fiscal policy angle. He juxtaposed two views on the relationship between fiscal consolidation and structural reforms, one where they are substitutes (e.g. because the temporarily unemployed from labour market reforms would have to be supported) and another where they are complements (e.g.