[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1996
Kiel Working Paper 772
Following the expenditure cuts decided upon by the German federal government in spring 1996, the impact of fiscal policy on the business cycle is investigated. The impulse given by fiscal policy is measured by the change of the structural general government budget surplus/deficit. It turned out that the restrictive stance of fiscal policy cannot prevent an economic upswing in the Federal Republic of Germany.