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Schulden dulden, Kredit genießen: zur Beständigkeit und Bedeutung von Budgetdefiziten

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  • Fritz Helmedag

Abstract

Referring to an allegedly “classical Keynesian model”, Hans-Werner Sinn wants to prove with mathematical rigor that credit-financed government expenditures always exceed the induced increase in tax revenues. Apparently, the remaining deficits accumulate over time. As a consequence, debts are supposed to grow both absolutely and in relation to the national product beyond all limits. These statements rest on a dubious causal analysis and an inadequate definition of the relevant multiplier. Rather, tax rates above a certain minimum yield fiscal revenues greater than the initial deficit. Besides, the debt-to-GDP ratio does not necessarily converge to infinity even if the state’s liabilities rise steadily. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Fritz Helmedag, 2015. "Schulden dulden, Kredit genießen: zur Beständigkeit und Bedeutung von Budgetdefiziten," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 95(5), pages 347-349, May.
    • Handle: RePEc:spr:wirtsc:v:95:y:2015:i:5:p:347-349
    DOI: 10.1007/s10273-015-1830-y
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    Cited by:

    1. Fritz Helmedag, 2022. "Steuern und Budgetdefizite als Determinanten des Sozialprodukts [How Taxes and Budget Deficits Determine Domestic Product]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(3), pages 229-235, March.

    More about this item

    Keywords

    E62; H62; H63;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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