Rigueur budgétaire, crédibilité des politiques budgétaires et comportement de consommation

We analyze the effects of credibility of fiscal policies, first on the levels of the announced and actual deficits, second on the consequences of restrictive fiscal policies. We examine the reasons for which the authorities can have an incentive to announce such policies, and the conditions under which those policies are credible. We also study the effects of credibility and fiscal restraint on consumption behavior; therefore on economic activity. We show the important role played by the way future production is determined and expected.