3 ms·
Thanks for the link. My first thought was that it would be a potential disaster like the inflexible and pro cyclical American balanced budget laws, but the Swis
by gahahaha 15y ago
Thanks for the link. My first thought was that it would be a potential disaster like the inflexible and pro cyclical American balanced budget laws, but the Swiss law seems very reasonable """It states that each year, the budget must be in balance, adjusted for economic conditions. This adjustment is made by multiplying expenditures by a cyclical factor (the ratio of trend real GDP to expected real GDP), thus either allowing for deficits during recessions or forcing lawmakers to have surpluses during booms."""
Since US GDP is currently far below potential GDP that would seem to allow for a substantial fiscal stimulus right now but force the government to save when the economy is stronger again.