Over the past couple of months, the German debate over fiscal and monetary policy has taken an interesting turn. Old, deeply ingrained economic dogmas, including that the public sector must strive to generate a fiscal surplus regardless of macroeconomic conditions, are being reappraised, at least by some. The economic situation is changing rapidly for the worse. The German economy – long the engine of eurozone growth – is undeniably sputtering. Powerful underlying currents are contributing to the slowdown. As a result, there is a high probability of a typical German recession (in terms of depth and duration), if not ... (full story)