Blogpost Titelbild: a route to growth xtock / Shutterstock Images

Impulse #2015/04: Fiscal Devaluation – a Route to More Growth?


The global economy faces a number of economic challenges: Economic growth in most industrialized nations is slowing, the crisis-hit countries of Southern Europe are suffering the effects of low competiveness and, even in some G7 countries, sovereign debt has reached levels in excess of 100 percent of gross domestic product. This paper looks at the method of fiscal devaluation as a way to boost economic growth without increasing government debt. More ...