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The Case for Putting a Public Investment Clause into the German Debt Brake

Author

Listed:
  • Janeba Eckhard

    (University of Mannheim, Germany, and Scientific Advisory Board to German Federal Ministry for Economic Affairs and Climate Action)

Abstract

In this article, I explore the need for reform of the German debt brake to incentivize public investment. I approach the issue from multiple angles: assessing elite support for debt brake reform among policymakers and economists, examining empirical evidence on the impact of fiscal rules on public investment, exploring the conceptual basis for prioritizing public investment within fiscal rules, and presenting a reform proposal put forth by the Scientific Advisory Board of the German Ministry of Economic Affairs and Climate Action.

Suggested Citation

  • Janeba Eckhard, 2024. "The Case for Putting a Public Investment Clause into the German Debt Brake," The Economists' Voice, De Gruyter, vol. 21(1), pages 175-180.
    • Handle: RePEc:bpj:evoice:v:21:y:2024:i:1:p:175-180:n:1003
    DOI: 10.1515/ev-2024-0010
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    More about this item

    Keywords

    German debt brake; public investment; fiscal rules;
    All these keywords.

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt

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