18.01.2019 - Studies

The slow death of the stability pact

The Stability and Growth Pact has not achieved its objective of "guaranteeing sound public finances” in EMU.

However, where fiscal policy dominates monetary policy and money is used as a financing instrument by governments, price stability generally suffers. German savers must therefore change their investment behaviour: Away from investment in nominal values (money and bonds) and towards investment in real values (notably equities).

Please note: This study is available in German only.

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