Public expenditure ratio

The share of government expenditure in GDP, measured at current prices and calculated according to certain rules of national accounting. – The higher the expenditure ratio, the narrower the part of the economy governed by market forces and the more the financial sector is affected by it, as well as the more monetary policy is hampered. – See deficit ratio, third-gate money, fiscal brake, fiscal referendum, fiscal policy, budget deficit, credit freeze, sustainability, policy default, debt brake, debt drug, debt ratio, government, semester, European, sensitivity analysis, budgetary, government debt pressure, welfare state trap, stability and growth pact, tax burden ratio, sunset proviso, fiscal sustainability, constitutional article one, growth-debt fact, historical, Wagner’s law, second-gate money. – Cf. Deutsche Bundesbank Monthly Report of April 2005, pp. 23 et seq. (detailed explanations), ECB Monthly Report of October 2006, p. 58 (projection up to 2050, also broken down by individual expenditure sectors and countries).

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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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