Kaldor-Hicks criterion (Kaldor-Hicks criterion)

Any economic policy measure, including any central bank policy, leads to an overall increase in social welfare only if – people who experience an increase in welfare – can fully compensate those who lose welfare – but still receive part of the original welfare gain (any economic policy measure improves the overall economic welfare only if those who gain can compensate those who lose, and still be better off). In the course of the ECB’s crisis policy, the Kaldor-Hick criterion was used as a justification. However, the Kaldor-Hicks criterion implicitly assumes a uniformly constituted society, a state. EMU, however, is not a state in this sense. – See presumptuousness, central banking, fear, perverse, buyouts, central banking, bail-out, bazooka, blackmail potential, euro bonds, ECB sin, moral hazard, low interest rate, nuclear option, zero interest rate, perpetual motion machine, Plan C, renationalization, monetary policy, bailout, inflation, forced expropriation.

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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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