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598 sats \ 1 reply \ @OriginalSize OP 4 Feb 2024 \ parent \ on: Fiscal Rules Do Not Undermine Investment, But Government Profligacy Does econ
What is important is that at a certain point, the bond market sets a limit for the legislator and the players through rising interest rates and a strong sell-off of government debt.
Do you think the debt brake is something legislators only need to consider when there are credibly safer places to store money? I mean on a global scale if there's nothing safer than treasuries, a strong sell off seems impossible, so there's less need to nudge with fiscal rules.
neo mercantile trade model
Does this mean Germany is importing things to resell to other EU states?
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546 sats \ 0 replies \ @GhostofTruth 4 Feb 2024
''Neo mercantile'' in the sense that they constantly maintained relatively low labour costs and a cheap currency to get a price advantage on global markets. Of course that had its price as german banks are crediting the deficits of the trading partners.
I think the debt break was a signal to german taxpayers after the debt and banking crisis 2010 with massive bail-outs of german banks to regain trust.
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