Since 1970 public debt in Germany has risen dramatically. The debt growth has neither been stopped by the constitutional deficit limit, nor by the European Stability and Growth Pact. At the moment, the cyclical upswing triggers increasing tax revenues and diminishing deficits. Yet this does not...

This paper analyses the shortcomings of the current budget rules for the Bundesländer, especially the definition of public investment that is used as a deficit ceiling in Germany. Two alternative budget rules are analysed, the Swiss debt brake as well as a version incorporating a golden rule...

Staatsverschuldung, Verschuldungspräferenzen, Verschuldungsmentalität, private Verschuldung, private Überschuldung. - Public debt, debt preferences, private debt mentality, private debt, private overindebtedness