of expected pension receipt. Current pension policy in Germany runs counter to this insight, though, leading to even …, in the German pension system benefit levels are closely linked to the current state of economic prosperity. Therefore, in …

In their reply, Dullien and van Treeck criticise the argument of Michaelis, Elstner and Schmidt that the German … on other legal grounds. / In their response Michaelis et al. stress that economic policy has to consider equally aspects …

role for fiscal policy to stimulate the economy. We reject this call and argue that in normal times, monetary policy and … automatic stabilisers are sufficient to smooth the business cycle. The effectiveness of active fiscal policy is too uncertain … almost impossible in real time. The benefits of active fiscal policy therefore do not outweigh its costs. Only in exceptional …

In the summer of 2014 Germany will witness the most substantial expansion of pension expenditures since the 1950s. Yet … rather privileged groups of the insured. These measures endanger the sustainability of the German pension system and will …