Finanzpolitik in der Ära Stoltenberg
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Finanzpolitik in der Ära Stoltenberg
Credit and Capital Markets – Kredit und Kapital, Vol. 23 (1990), Iss. 2 : pp. 251–276
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Ulrich van Suntum, Wiesbaden
References
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Google Scholar -
Bilson, J. F. O. (1976): A Monetary Approach to the Exchange Rate, unpublished Ph. D. Dissertation, University of Chicago.
Google Scholar -
Bilson, J. F. O. (1978): "The Monetary Approach to the Exchange Rate: Some Empirical Evidence", IMF-Staff Papers, Vol. 25, 48 – 75.
Google Scholar -
Bilson, J. F. O. (1979): "Recent Developments in Monetary Models of Exchange Rate Determination", IMF-Staff Papers, Vol. 26, 201 – 223.
Google Scholar -
Branson, W. H. (1977): "Asset Markets and Relative Prices in Exchange Rate Determination", Sozialwissenschaftliche Annalen, Vol.1, 69 – 89. Reprinted in International Finance, No. 20, June 1980.
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Abstract
Financial Policy in the Stoltenberg Era
The paper takes stock of Gerhard Stoltenberg's term of office as Federal Minister of Finance, which lasted for six and a half years. The paper shows that the consolidation of public finances – defined as the net rise of public-sector borrowings expressed as a percentage of the production potential – made progress; in 1988, this percentage was down to about just one half of what it had been in 1981. Contrary to the widely held opinion, this result is not to be explained by the use of Bundesbank profits for financing public expenditures or by the overall economic situation which was good to a limited extent only. A distinct decline of the public share in GNP was, incidentally, to be recorded only in 1982 and 1983.
The consolidation policy did not cut back on the level of social benefits overall, but entailed shifts that were made primarily at the expense of sectors such as the health sector where the mentality to take as much as possible and considerable abusive practices had been assumed to exist and to the benefit of families with children and of the long-term unemployed. It ought to be criticized, however, that in the period under review the government's propensity to invest went down further, whilst no progress was made in the cutting of subsidies. On the other hand, the resumption of the policy of privatizing publicly owned assets after a standstill of 18 years must be regarded as a positive element.
The three-stage tax reform carried out between 1986 and 1990 has generated growth impulses, even though these impulses have, in corporate taxation, fallen back behind what would have been feasible and desirable. On the other hand, there are not any solid arguments that would speak in favour of a redistribution of wealth from the bottom to the top. Any such conclusion would be based on evaluation yardsticks that have nothing to do with the ability-to-pay principle of taxation.