Arbeitspapier
Fiscal policy and rebalancing in the Euro area: A critique of the German debt brake from a Post-Keynesian perspective
The German debt brake is often regarded as a great success story, and has therefore served as a role model for the Euro area and its fiscal compact. In this paper we fundamentally criticize the debt brake. We show that (1) it suffers from serious shortcomings, and its success is far from certain even from a mainstream point of view; (2) from a Post-Keynesian perspective, it completely neglects the requirements for fiscal policies of member-countries in a currency union and will prevent fiscal policy from contributing to the necessary rebalancing in the Euro area; and (3) alternative scenarios, which could avoid the deflationary pressures of the German debt brake on domestic demand and contribute to internally rebalancing the Euro area, are extremely unlikely, as they would have to rely on unrealistic shifts in the functional income distribution and/or investment and savings behavior in Germany.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 776
- Klassifikation
-
Wirtschaft
Aggregate Factor Income Distribution
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Fiscal Policy
Incomes Policy; Price Policy
Studies of Particular Policy Episodes
National Deficit; Surplus
National Debt; Debt Management; Sovereign Debt
- Thema
-
Fiscal Policy
Rebalancing
Functional Income Distribution
Debt Brake
Germany
Euro Area
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hein, Eckhard
Truger, Achim
- Ereignis
-
Veröffentlichung
- (wer)
-
Levy Economics Institute of Bard College
- (wo)
-
Annandale-on-Hudson, NY
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hein, Eckhard
- Truger, Achim
- Levy Economics Institute of Bard College
Entstanden
- 2013
Ähnliche Objekte (12)
Fiscal policy in the macroeconomic policy mix: A Critique of the New Consensus Model and a comparison of macroeconomic policies in France, Germany, the UK and Sweden from a Post-Keynesian perspective
Finance-dominated capitalism in crisis: The case for a Global Keynesian New Deal
Varieties of demand and growth regimes: Post-Keynesian foundations
Varieties of demand and growth regimes – post-Keynesian foundations
Post-Keynesian macroeconomics since the mid 1990s: main developments
Post-Keynesian macroeconomics since the mid-1990s: Main developments
Post-Keynesian macroeconomics since the mid-1990s – main developments
The European Financial and Economic Crisis: Alternative Solutions from a (Post-) Keynesian Perspective
Germany's post-2000 stagnation in the European context - a lesson in macroeconomic mismanagement
Fiscal Policy and Macroeconomic Performance in the Euro area - Lessons for the Future
Monetary policy, macroeconomic policy mix and economic performance in the Euro area
Special Issue: How to Cope With Divergence in an Enlarging European Union?
Fiscal policy in the macroeconomic policy mix: A Critique of the New Consensus Model and a comparison of macroeconomic policies in France, Germany, the UK and Sweden from a Post-Keynesian perspective
Finance-dominated capitalism in crisis: The case for a Global Keynesian New Deal
Varieties of demand and growth regimes: Post-Keynesian foundations
Varieties of demand and growth regimes – post-Keynesian foundations
Post-Keynesian macroeconomics since the mid 1990s: main developments
Post-Keynesian macroeconomics since the mid-1990s: Main developments
Post-Keynesian macroeconomics since the mid-1990s – main developments
The European Financial and Economic Crisis: Alternative Solutions from a (Post-) Keynesian Perspective
Germany's post-2000 stagnation in the European context - a lesson in macroeconomic mismanagement
Fiscal Policy and Macroeconomic Performance in the Euro area - Lessons for the Future
Monetary policy, macroeconomic policy mix and economic performance in the Euro area
Special Issue: How to Cope With Divergence in an Enlarging European Union?
Fiscal policy in the macroeconomic policy mix: A Critique of the New Consensus Model and a comparison of macroeconomic policies in France, Germany, the UK and Sweden from a Post-Keynesian perspective
Finance-dominated capitalism in crisis: The case for a Global Keynesian New Deal
Varieties of demand and growth regimes: Post-Keynesian foundations
Varieties of demand and growth regimes – post-Keynesian foundations
Post-Keynesian macroeconomics since the mid 1990s: main developments
Post-Keynesian macroeconomics since the mid-1990s: Main developments
Post-Keynesian macroeconomics since the mid-1990s – main developments
The European Financial and Economic Crisis: Alternative Solutions from a (Post-) Keynesian Perspective
Germany's post-2000 stagnation in the European context - a lesson in macroeconomic mismanagement
Fiscal Policy and Macroeconomic Performance in the Euro area - Lessons for the Future
Monetary policy, macroeconomic policy mix and economic performance in the Euro area