Government borrowing without increasing infrastructural assets – such as schools, hospitals, transport routes, communications facilities – and thus at the expense of future generations. Sooner or later, this leads to inflation and stagnation; proper monetary policy becomes impossible. – See age dependency ratio, deficit ratio, fiscal referendum, budget deficit, day care for children, lie-and-deceive thesis, rule, golden, debt brake, debt ratio, government debt pressure, stability and growth pact, constitutional article one. – Cf. Monthly Report of the Deutsche Bundesbank, April 2005,
p. 23 ff., Monthly Report of the Deutsche Bundesbank of May 2009, p. 25 (contingent liabilities would have to be included in government debt).
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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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