IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Eine Finanzpolitik im Interesse der naechsen Generationen

Listed author(s):
  • Achim Truger
  • Henner Will

At a time with growing fears of excessive government debt and of overburdened future generations Swiss fiscal policy seems to be the virtuous role model to be followed. Whereas almost everywhere else government debt has been increasing dramatically after the global economic and financial crisis in 2008, in Switzerland it decreased steadily ever since 2003. According to the official and widespread interpretation this success is essentially a result of the introduction of the so called 'debt brake' on the federal constitutional level. The present study, however, shows that the - at first glance plausible - success story has to be revised substantially. In order to show this the study firstly deals with the question whether the 'debt brake' is indeed responsible for the impressive process of budget consolidation. Secondly, the theoretical arguments in favour of strict limits for government deficits and debt are reconsidered and it is shown that the Swiss debt brake violates the golden rule of fiscal policy according to which (net) public investment should be financed by credit. Thirdly, two important practical problems of Swiss fiscal policy are identified, namely the severe limits it imposes on the government's ability to act in times of economic downturn and the observable neglect of public investment spending. Fourthly, specific solutions addressing the problems identified are developed.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute in its series IMK Studies with number 24-2012.

in new window

Length: 88 pages
Date of creation: 2012
Handle: RePEc:imk:studie:24-2012
Contact details of provider: Postal:
Hans-Böckler-Straße 39, 40476 Düsseldorf

Phone: +49 211 7778 234
Fax: +49 211 7778 4234
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Scherf, Wolfgang, 2007. "Öffentliche Verschuldung," Finanzwissenschaftliche Arbeitspapiere 80, Justus Liebig University Giessen, Fachbereich Wirtschaftswissenschaften.
  2. Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," American Economic Review, American Economic Association, vol. 100(2), pages 573-578, May.
  3. John B. Taylor, 2000. "Reassessing Discretionary Fiscal Policy," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 21-36, Summer.
  4. Achim Truger & Katja Rietzler & Henner Will & Rudolf Zwiener, 2010. "Alternative Strategien der Budgetkonsolidierung in Österreich nach der Rezession," IMK Studies 02-2010, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  5. Achim Truger & Henner Will, 2012. "Gestaltungsanfällig und pro-zyklisch: Die deutsche Schuldenbremse in der Detailanalyse," IMK Working Paper 88-2012, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:imk:studie:24-2012. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Nemitz)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.