Behebung eines Webfehlers: Wie die Konjunkturkomponente demokratisch legitimiert und nachhaltiger werden könnte

Fixing a Design Error: How the Cyclically Adjusted Budget Balance Becomes Democratically Legitimate and Sustainable

Florian Schuster () and Philippa Sigl-Glöckner ()
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Florian Schuster: Dezernat Zukunft
Philippa Sigl-Glöckner: Dezernat Zukunft

Wirtschaftsdienst, 2022, vol. 102, issue 11, 826-829

Abstract: Abstract The optimisation of the cyclical adjustment procedure under the German debt brake should focus on how to contribute to a democratically legitimate and sustainable fiscal policy. In this article, we discuss four criteria that should be satisfied: The method must (i) be sufficiently determined, (ii) take the current state of research into account, (iii) incentivise a policy that enhances supply-side capacities, and (iv) be transparent. We show that today’s form of the cyclically adjusted budget balance does not satisfy these criteria, and we propose a reform. Finally, we discuss several recent trends in German fiscal policy, questioning whether such a reform can save the debt brake’s plausibility.

Keywords: E24; E62; H63 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10273-022-3323-0

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