Economics, Econometrics and Finance
8 years ago

Germany's 'Debt Brake' Leads to Stable Economy and Lower Volatility

Finance and Economics Discussion Series
Fiscal Consolidation using the Example of Germany
Tobias Cwik

Paper Summary

Related papers

Economics, Econometrics and Finance
2 years ago

Fiscal fatigue threatens economic stability in CEMAC countries, fiscal rules ineffective.

Fiscal Policy
Infrastructure Impact
Retirement Planning
2 views
Theme background image
Social Sciences
4 years ago

Local governments in China face fiscal unsustainability due to vertical fiscal imbalance.

Fiscal Decentralization
Infrastructure Impact
Fiscal Policy
2 views
Economics, Econometrics and Finance
4 years ago

Tamil Nadu's Fiscal Reforms Pave Way for Infrastructure Investment Boom.

Fiscal Policy
Infrastructure Impact
2 views

The article examines how Germany managed its debt through a policy called the 'debt brake'. This policy helps control debt during good economic times without restricting spending during recessions. The study shows that the debt brake initially boosts government spending impact but not in the long run. It also stabilizes the private sector without making fiscal tools more unpredictable.