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Die Schweizer Schuldenbremse - nachhaltiger und konjunkturgerechter als der neue Stabilitäts- und Wachstumspakt?

Year:    2006

Author:    Colombier, Carsten

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 126 (2006), Iss. 4 : pp. 521–533

Abstract

The Swiss debt brake is a fiscal rule at central government level which aims at stabilising debt. However, business cycle fluctuations are also accounted for. This paper discusses criticism of the debt brake that it cannot feasibly simultaneously achieve either anti-cyclical or sustainable fiscal policy. Moreover, the debt brake is critically compared with the New European Stability and Growth Pact. Although some of this criticism applies to the debt brake it can be shown that the debt brake can achieve both goals. In this respect the debt brake would appear to be superior to the European Stability and Growth Pact.