Economic adjustment reserve

The economic adjustment reserve is an instrument of an anti-cyclical economic policy. According to Sections 5 and 15 of the Stability and Growth Act (StWG), the Federal Government can, with the consent of the Bundesrat
In times of boom, order that the federal and state governments add financial resources to their cyclical adjustment reserves. This is intended to curb government spending if demand exceeds economic performance. The funds released from the cyclical adjustment reserves are to be used in a phase of economic slowdown to stimulate economic activity again.

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