The current economic policy implemented in different countries takes account of the changing external and internal circumstances. The recent crisis (2007–2008) revealed the weakness of the established economic theories, also as regards fiscal policy. Consequently, a great number of countries...

Germany introduced a new fiscal rule, the ‘debt brake’, after the Global Financial Crisis and since then experienced a strong decline in its public debt to GDP ratio until the coronavirus pandemic struck. The past ten years and the reaction to the current crisis in Germany illustrate the...