It is much easier to operate verified in time reduction in interest rates than fine-tune to the situation by changing the tax. Moreover, Europe is still possible to loosen monetary policy. Even after the recent interest rate cuts in the eurozone is 2.5%, while in the UK – 2%. In this case, and the European Central Bank (ECB) and Bank of England, like the U.S. Federal Reserve, have proven – though not in equal measure – his desire to go for low cost in order to provide liquidity to their banking systems. Budget expenditures are difficult to quickly build and even harder – reduction after recovery. It should also indicate the fact that Europe has also stronger fiscal foundation. The fact that here – compared to the U.S.

– a much larger share of GDP is created in the public sector, and therefore the decline in spending in the private sector has proportionally smaller effect on the economy as a whole. Unemployment benefits in Europe than in America, so the appropriate budget expenditures during the economic downturn is growing stronger. Taxes, too above, and in times of recession the corresponding revenue tend to a rapid decrease, resulting in an automatic relief to the fiscal burden on taxpayers. For all these reasons, in Europe there is still a good opportunity to resort to active fiscal policy. At the same time, the impact of interest rate cuts weakened and slowed down 'sick' of the banking system, which is the link between central bank's policy and the real economy.