When Black Zero Comes

I’m gonna dig myself a hole…

Black Zero

When Germans refer to a “black zero” these days they mean a balanced fiscal budget with no red ink. What a concept. If it weren’t so unthinkable (I am from US-Amerika and we’re clearly too smart for that) I would have a “quasi-religious fixation” with it, too. More power to you, Wolfgang.

In his aversion to the pursuit of full employment through fiscal policy, Mr Schäuble is an obvious heir to Eucken. This is also true of prominent German economists who, during the eurozone crisis, have ignored the effects of austerity on demand, out of a deep-seated belief that structural reforms can solve all problems.