Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308247 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Wirtschaftsdienst [ISSN:] 1613-978X [Volume:] 104 [Issue:] 11 [Year:] 2024 [Pages:] 773-777
Publisher: 
Sciendo, Warsaw
Abstract: 
The debt brake was introduced to limit electoral spending excesses and ensure (debt) sustainability. Although the debt ratio has been reduced, this has come at the cost of an investment backlog and persistent current account surpluses. The reason for this is the household savings surplus that cannot be utilised domestically. If these savings exceed the capital requirements of companies, either government debt or foreign debt inevitably increases. Consequently, the reduction in the debt ratio in recent years has led to higher foreign debt. In light of low interest rates, higher investments will benefit future generations more than lower debt levels.
JEL: 
G51
H63
F21
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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