ABSTRACT
Most of the time federal policy-makers endeavoured to use two mixes of fiscal policy instruments since the 1970s: the Keynesian attempts were characterised by an increase in spending while taxes were also supposed to be increased in order to compensate for the loss in revenue; the neo-liberal or supply-side policies were based on a reduction of taxes. In Canada, Germany, Switzerland, and Belgium, there is practically no government since the 1970s that wanted to establish a Keynesian policy in stricto sensu, that is a demand-stimulation policy that is based on deficit-spending. Although Belgium and Canada are more profoundly restricted in terms of federalism, all federal countries have federal constraints in implementing this strategy because territorial relationships force to accept negotiation and compromises in order to implement this strategy. While the Canadian government used the fiscal policy instrument despite limited scope and uncertainty, the German government was even more limited and has not eagerly embraced tax abatements.
