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The purpose of this study was to estimate Lithuania’s and EU-15 countries group real GDP per capita growth rates and to evaluate possible convergence scenarios. The real GDP per capita (in purchasing power standards) data for EU-15 and Lithuania for a period of 2005-2016 were employed to establish comparative average annual GDP per capita growth rates. Three possible convergence scenarios were analyzed: “As it Were”, i.e. if the average annual growth rates remain at the current levels, “Speeding Up”, i.e. if the c...

Recent global economic crisis has revived a longstanding debate whether government spending or austerity is the better way to stop financial downslide and to set economy straight. Two notably opposite schools of economic thought have crossed swords: one championing “honeyish” fiscal stimulus via increased government borrowing and spending, and another, advocating “tarry” public spending cuts. The major aim of this paper is to contrast and compare the working mechanisms behind spending and austerity measure...