You currently have no access to view or download this content. Please log in with your institutional or personal account if you should have access to this content through either of these.
Showing a limited preview of this publication:
Abstract
Germany and other European countries have piled up considerable public debt in response to the Corona crisis. But owing to the ultra-low interest rates, which are likely to remain for the foreseeable future, there are no concerns regarding debt sustainability. Quickly paying down this debt by imposing austerity would be the wrong strategy from an economic point of view, but it could nevertheless imposed by existing fiscal rules. Those rules should be reformed quickly. The right way to handle the Corona debts is to engage in debt rollover, that is, to essentially inflate them away in times of negative real interest rates.
Published Online: 2021-04-28
Published in Print: 2021-05-26
© 2021 Walter de Gruyter GmbH, Berlin/Boston
