Jens Weidmann resigned: Why German Fiscal Restraint Does Not Make Sense Anymore

Yes, you read the headline correctly. We are indeed proposing to abolish Germany’s strict austerity policy and replace the current debt limits rooted in Germany’s Basic Law. We are suggesting this despite decades (literal not metaphorical) of maintaining rather conservative political theories that most certainly would not easily accept unfettered government debt. Yet here we are and cannot help but take a new look at the subject not least because Bundesbank chief Jens Weidmann resigned. We explain why.