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Jan, Priewe. (2021) Reforming the Fiscal Rulebook for the Euro Area – and the Challenge of Old and New Public Debt.
In: IMK Studies. RePEc:imk:studie:72-2021.
Full description at Econpapers
cites:
growth of GDP, buoyant tax revenues without tax increases, strong relief in interest payments and from moderately subdued spending over a long upswing period of 9 years. Without the expansionary monetary policy of the ECB, which reduced r in Germany, the debt reduction would not have worked (cp. Rietzler/Truger 2020). Both episodes, the U.S. and the German one, demonstrate that postulating the simple solution of raising primary balances via less expenditure growth as a universal success formula is only a small part of the real story.
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