What smooths consumption during recessions in the euro zone and the United States?

Several developments smooth consumption during economic (GDP) cycles: Higher fiscal deficits; A fall in corporate earnings ; An increase in income received from the rest of the world; A fall in the household savings rate; An increase in domestic borrowing; An increase in external borrowing. We find that consumption has been smoothed: In the euro zone: in 2000-2001 and 2008-2009 by the fiscal deficit; in 2020 also by earnings and domestic and external borrowing; In the United States: in 2000-2001 and 2008-2009 by the fiscal deficit and earnings ; in 2020 also by domestic and external borrowing; Income received from the rest of the world does not play any role; the savings rate is procyclical.