Interest Benefits from the Debt Crisis to the German Budget: Updated Calculations

Reint Gropp and Oliver Holtemöller

No 8/2015, IWH Online from Halle Institute for Economic Research (IWH)

Abstract: In a recent IWH online note, the IWH suggested that due to “flight to safety” effects, Germany was able to issue government debt at lower rates than otherwise would have been possible. The total savings was calculated to be around Euro 100 billion or about 3 percent of German GDP. This note provides further evidence on the interest savings to the German budget that extend the calculations in two dimensions. Using this refined methodology, we obtain interest savings to the German budget of just under Euro 90 billion.

Keywords: European Union; Greek crisis; government bonds; German public budget; Greece; Germany (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-eec
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/142209/1/io_2015-08.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhonl:82015

Access Statistics for this paper

More papers in IWH Online from Halle Institute for Economic Research (IWH) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().