Dolls, Mathias; Peichl, Andreas; Zimmermann, Klaus F. - Institute for the Study of Labor (IZA) - 2011
instrument than the former Stability and Growth Pact for the Eurozone which in fact stipulated a ceiling for the budget deficit … debt brakes which are in force in Switzerland and Germany. The new fiscal policy framework thus leaves enough room for … discretionary fiscal policy and the workings of automatic stabilizers in an economic downturn. …