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The poor state of public finances in many countries has led to calls for fiscal consolidation. In practice, implementing concrete consolidation measures appears to meet with public resistance, suggesting that the success of consolidation efforts strongly depends on the popularity of the chosen...
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This paper analyzes German and Spanish fiscal policy using simple policy rules. We choose Germany and Spain, as both … 1990s.We focus on the question, how fiscal policy behaves under rising public debt ratios. It is found that both Germany … and seems to be non-permanent in the case of Germany.-- Fiscal policy rules ; public debt ; euro area ; fiscal …
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A longer-term perspective reveals the historical exhaustion of the financial resources of the democratic interventionist state of the postwar period. German politics present and future is shaped by a deep crisis of public finance. Its current expression is an apparently insurmountable conflict...
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