Spending restraint, public (budget restraint)

In general, the reduction of government spending. – In a narrower sense, the accumulation of tax revenues that have been appropriated but not yet spent. – This set-aside taxpayer money causes a decline in demand in the economy. This in turn – tends to cause an under-utilization of capacities. In view of this, many affected companies will – increase their efforts to boost exports abroad (efforts to boost exports are stepped up). – The export ratio rises with the consequence that, assuming convertibility, – the domestic money supply increases. – This relationship is believed to have been demonstrated in Germany between 1953 and 1957, when unspent tax revenues were accumulated to build up the German federal armed forces. – The debt brake agreed in the EU. – See Treasury.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.gerhardmerk.de/