There are answers given by politicians to journalists’ questions that are stereotypically repeated hundreds of times, and although each of the answers is completely meaningless, they are never followed up. So, it is with the debt brake for Germany and Europe and the question of whether it should not be revised after the Corona shock. …
In the exploratory talks in the run-up to coalition negotiations and in their media accompaniment, the state’s debts played a prominent role. In particular, the conservative parties and their media lobbyists feel called upon to warn against a “softening” of the legally established debt rules in Germany and Europe. …
If you want to understand why we have such a hard time explaining economic processes adequately, you have to look at the discussion on inflation these days. It seems as if we have to puzzle over and over again what the causes of inflationary processes are and decide again and again under high uncertainty whether we are currently dealing with a dangerous or a relatively harmless change in prices. …
Cross-posted from Brussels Morning (https://brusselsmorning.com)
What is called economics in Germany has become unchallenged ideological preaching. It is not about understanding economic interrelations, but a theology of conviction that is not grounded on facts and theory.
It is hard to believe that the “crème de la crème” of German economists fail time and again to soberly assess unfolding events. …
