Mises Wire
Author:
Philipp Bagus
Online Publish Date:
mind. They are insulated from the market competition that compels market actors to innovate and economize. In addition to the incentive problem, the knowledge or aversion to inflation and deficits has put the brakes on other states’ fiscal policies. Admittedly, the German brake has been sometimes more successful, sometimes government deficits is removed, if Germany itself uses tricks to circumvent fiscal policy rules, actively engages in a debt race and loses its authority, there is a