Curiously, an expansionary fiscal policy may lead to a social crisis
In OECD countries, the small wage increases led to low inflation, then to low interest rates, and this enabled governments to conduct expansionary fiscal policies. Expansionary fiscal policies are therefore closely associated with social austerity and a skewing of income distribution at the expense of employees. We can therefore see social crises appearing in countries that practise a very expansionary fiscal policy, since such a policy can be implemented only if wages contract.