fiscal policy
Reports on fiscal policy See all →
The euro and the German constitution
Two legal challenges to the EU central bank’s most controversial policies have been working their way through Germany’s Federal Court of Justice, the country’s supreme court equivalent. In one of the cases, the justices in Karlsruhe already ruled that the authority of the EU Banking Union ought to be limited. A verdict on the legality of the EU’s “quantitative easing” policy, under German law, is expected soon. This could prove to be the moment of truth not only for Germany.
GIS Dossier: Tax reform vs. harmonization
Political elites around the world are calling for higher taxes, as well as more centralized, unified systems to ensure as much as possible is collected. Yet populations are increasingly raising the alarm about overly complex or onerous taxes. For years, GIS experts have explained why moves toward higher tax burdens ...
Opinion: The financial elephant in the room
Like medieval alchemy that failed to turn lead into gold, today’s easy-money folly of central banks and governments will lead to crisis, not economic growth and prosperity. After years of addiction to overspending, neither politicians nor central bankers seem capable of returning to responsible policies. New technologies such as cryptocurrencies, ...
The dangers of preferential treatment for sovereign debt
Under current rules, eurozone countries’ bonds are classified as “zero-risk,” meaning banks are not required to hold any capital against such assets. The system creates a perverse incentive for banks to stock up on sovereign debt, creating a toxic mix – but what can be done? Putting risk assessments on ...
The debt problem ignored
The world has grown addicted to ceaseless injections of new money, which can only be generated by incurring debt. As relentless fiscal expansion continues on both sides of the Atlantic, politicians have no long-term plan for dealing with the crushing liabilities it generates. A financial meltdown can be delayed for ...
