In economic terms, the totality of all measures to shape the revenues, expenditures and assets of the public sector (the state). This includes first and foremost – the determination of taxes and subsidies, – the decision to incur and repay debt, and – the adoption of a revenue and expenditure account (budget). These measures may also affect the value of money in different ways. Therefore, there are numerous overlaps between monetary policy and fiscal policy. – From a business perspective, the comprehensive organization of all capital flows and the capital structure in a company (financial management), including the planning of income and expenditure over several years to safeguard the future. – See deficit ratio, demographic hardening, fiscal policy, fiscal union, fund economy, budget deficit, Methuselah syndrome, demand financing, sustainability, nonaffectation principle, parafiscal, rule, golden, shadow debt, debt brake, debt ratio, sensitivity analysis, budgetary, government debt pressure, Stability and Growth Pact, sunset proviso, economic government, European. – Cf. ECB Monthly Bulletin of February 2006, pp. 79 ff. (in-depth, empirically supported exposition of the interdependencies between fiscal policy and financial markets; pp. 88 f.: link between fiscal policy and interest rates in the euro area), ECB Monthly Bulletin of July 2008, pp. 71 ff. (textbook exposition of the interdependence between monetary policy and fiscal policy; formula; references; overviews), Deutsche Bundesbank Monthly Bulletin of December 2008, pp. 46 ff. (German fiscal policy in EMU), Monthly Report of the Deutsche Bundesbank of May 2009, p. 25 (contingent liabilities would have to be included in government debt), Monthly Report of the Deutsche Bundesbank of November 2012, p. 22 ff. (government budget deficits in the euro area as a whole and in problem countries; overviews).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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