Structural Reforms and Fiscal Policy: Lessons from Germany

Otmar Issing and Ludger Schuknecht explain in this WSJ oped that “Berlin’s pro-growth efforts in the early 2000s saved money rather than require extra spending” – here.

2 replies on “Structural Reforms and Fiscal Policy: Lessons from Germany”

Germany in the early 2000s was adjusting when there were countries it could export to, when growth was still a features of macroeconomics (even if it was driven by credit expansion) and before beggar my neighbor became the econodiplomatic default.

The situation now is very different.
The CBs have pumped 9.5 trillion dollars into the markets and the NYSE still hangs on every word from the monthly non farm payroll report.
If Berlin’s “pro growth efforts” worked the EZ wouldn’t be staring at deflation.

I’m allergic to Issing (advisor to matrixsQuid): a one line summary appreciated.

BTW, trains not on time in Germany at the mo; not even moving.

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