Germany has fairly sober fiscal plans but has undermined its ability to pay back debt by achieving poor economic growth, since government tax revenue is determined by the tax rate times the size of the economy.

causalpending

Speaker

John Cochrane

Evidence Quote

the tax revenue the government get is tax rate times the level of the economy

Source

Will Western governments soon hit their debt limits? Prof. John CochraneMoney & Macro Talks
Created: 8/12/2026, 6:10:20 PM

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