Mehr als dreißig Jahre Fiskalpolitik in Deutschland. Die unerfüllten Versprechungen der Dogmatiker
Fiscal Policy in Germany from 1970 to 2001. The Unfulfilled Promises of Dogmatism

This essay considers fiscal policy of the central state, the states and local authorities in Germany. Budget-crowding-out as well as the failure of budget consolidation are, at first sight, outstanding features of budget policy in Germany. But in contrast to the European Agreement on Stability and Growth it is argued that in the long run a balanced, tax-financed budget is not a necessary and sufficient condition for a high level of employment and growth. A sophisticated empirical analysis of the budget shows that tax structures and public expenditures which are designed to effectively promote growth and employment are far more important than a balanced budget. Additionally there are profound theoretical arguments for a more flexible and differentiated fiscal policy in Germany and in the European Community.

JEL classification: E63, H62, H87, E32, E52

Konjunkturpolitik, Volume 48, 2002, No. 2, pp. 147-168

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