Germany’s Trillion Euro Question

German elites are right that something (big) needed to be done. A pity they are getting it so wrong.

Germans are famously – infamously, really – fiscally conservative. Believe me, I know: I am German and have witnessed for decades, indeed all my conscious life, how my compatriots have fretted obsessively over public debt.

They often conflate the rules that may work for individual, personal frugality with what is needed by a modern state and its economy. Indeed, they have crystallized their misguided ideal of how to manage public finance with a tight fist and little foresight in the odd avatar of ‘the Swabian Housewife’ (Swabians are stereotypically thrifty and prudent; sort of the Scots of the German sense of self).

And whenever the national adoration of the Swabian Housewife was not enough, plaintive sobs of ‘Weimar, Weimar’ were added. You see, Germany’s first failed experiment at (more or less) democracy, the Weimar Republic of the interwar years, is said to have died, among other things, of inflation.